The cryptocurrency market recorded many sectors growing strongly from 2% to 9% in 24 hours, supported by positive policy and geopolitical developments.
The signing of the decree by the U.S. president allowing 401(k) retirement plans to invest in cryptocurrency opens up a stable capital source of about $9 trillion. Market sentiment is also boosted by hopes for peace between Russia and Ukraine.
MAIN CONTENT
The values of many cryptocurrency sectors have surged sharply, notably Layer 2 rising by 9.53%.
Positive impact from the investment decree in U.S. 401(k) retirement funds into cryptocurrency.
Expectations for a ceasefire between Russia and Ukraine improve investment sentiment, many key tokens surge.
How does the cryptocurrency market show signs of recovery according to the latest data?
The cryptocurrency market recorded uniform growth across most sectors with increases from 2% to nearly 10% in 24 hours, indicating positive signals and a notable improvement in investor confidence.
Specifically, Layer 2 leads with a 9.53% increase, Mantle (MNT) surged to 25.77%, Zora (ZORA) rose 34.35%. Ethereum (ETH) surpassed the $3,900 mark for the first time with a 5.67% increase, while Bitcoin (BTC) slightly rose 1.79%, reaching $116,000.
The widespread bullish consensus is also reflected in other sectors such as PayFi (up 9.09%), NFT (up 7.75%), and DeFi (up 6.02%). These are all positive signs for the recovery and expansion of the cryptocurrency sector.
What impact does the 401(k) investment decree in cryptocurrency have on the market?
The decree signed by the U.S. president allowing 401(k) retirement funds to invest in cryptocurrency is expected to create a long-term capital source of approximately $9 trillion, contributing to the stability and liquidity of the market.
This opens up significant opportunities for cryptocurrency to become widely accepted assets in traditional retirement investment portfolios, promoting sustainable development and minimizing volatility.
This decree marks a significant turning point in legitimizing cryptocurrency in long-term investment portfolios, creating strong confidence for both individual and institutional investors.
Financial expert's insights, 2024
What geopolitical factors are affecting the cryptocurrency market?
Expectations for a ceasefire agreement between Russia and Ukraine have contributed to improving market sentiment, driving investment flows back into cryptocurrency as a hedge and diversification asset.
In this context, many tokens in sectors like PayFi, NFT, and RWA have shown impressive growth, for example, XRP increased by 11.21% after concluding a 4-year lawsuit, and Stellar (XLM) rose 14.41%.
This shows that global political factors still play an important role in navigating price volatility and investment trends in the DeFi sector today.
Which sectors in the cryptocurrency market have the most remarkable growth?
Layer 2 is the strongest growth group in the statistics with a 9.53% increase, thanks to Mantle and Zora rising 25.77% and 34.35%, respectively.
In addition, the PayFi, NFT, and RWA sectors also attract significant attention with an average increase of over 7%. Pendle and Keeta of RWA rose 26.69% and 28.56%, respectively, while NFT Pudgy Penguins increased by 6.68%.
Growing diversity across many sectors reflects flexible investment shifts and the expansion of cryptocurrency into real value segments and diverse applications.
A diverse market with uniform growth across segments will help create a solid foundation for the long-term development of DeFi.
Blockchain financial expert, August 2024
Frequently Asked Questions
What does the strong price increase of Layer 2 mean for the cryptocurrency market?
The strong price increase in Layer 2 indicates the appeal of blockchain scalability and reduced transaction fees, facilitating developers and users in expanding DeFi and DApp applications.
Does the 401(k) investment decree reduce the risks of investing in cryptocurrency?
The legalization of investment helps increase stability and awareness of cryptocurrency in the long term; however, the risk of price volatility still exists and needs to be managed appropriately.
How long will geopolitical factors continue to affect cryptocurrency prices?
It is currently impossible to determine when it will end, but hopes for peace are a positive driver for liquidity and capital inflows into the market in the short and medium term.
Why did XRP increase in price and how does it affect the PayFi sector?
XRP rose 11.21% after the lengthy legal dispute with the SEC ended, enhancing its reputation and helping PayFi attract more investors.
What is the RWA sector and why is it gaining attention in the current upward trend?
RWA (Real World Assets) integrates the tokenization of physical assets, helping diversify and increase liquidity in cryptocurrency, attracting attention with increases of nearly 30% for representative tokens.
Source: https://tintucbitcoin.com/layer2-tang-ethereum-vuot-3-900-usd/
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