2022-1-5 23:50 |
Institutional investors have been warming up to the idea of crypto investing in recent years. In fact, in 2021 we saw increased institutional capital into crypto, and this is expected to continue in the long term. After all, cryptocurrencies are now a serious asset class for all investors. Here is why this trend is very important for retail or individual investors:
Institutional investments in crypto are likely long-term and as such, there is potential for increased asset value.
The flow of institutional money gives crypto more credibility, something that attracts more individual investors.
However, institutional capital is not flowing in all assets in fact, only a select list of cryptocurrencies is benefiting.
At first glance, you’d expect Bitcoin (BTC) to be an obvious choice for institutional money. But this is not true. Although Bitcoin is still a huge part of crypto, most institutional investors are keen on these two coins:
Ethereum (ETH)Ethereum (ETH) is the second biggest crypto by market cap. The main reason why the coin is attracting a lot of investors, not just institutional ones, is based on its overall ecosystem. Ethereum provides a platform where developers can launch decentralised applications.
Data Source: Tradingview.com
In fact, thousands of new projects have been launched on Ethereum, and the chain accounts for the highest percentage of new DApps in the market. This makes it a crucial driver of blockchain technology and innovation in the future.
Cardano (ADA)Cardano (ADA) is also a scalable blockchain that uses the proof of stake consensus to validate transactions. Like Ethereum, the chain also provides an efficient platform where developers can launch DApps.
Cardano was founded in 2017 and has since grown to become one of the most valuable blockchains in the world. It is also attracting the interest of institutional investors. At the time of writing. ADA was selling for $1.34 with a market cap of $44.7 billion.
The post These are the most popular cryptocurrencies among Institutional investors right now appeared first on Coin Journal.
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