FOMO remains alive and well in the cryptocurrency world, with lesser-known tokens outperforming again in the wake of recent rallies staged by industry leaders Bitcoin and Ether.
Cardano has doubled this month, becoming the third-largest digital asset. Binance Coin is also up. A token named Avalanche has tripled in August. Meanwhile, prices for digital photos of rocks with laser eyes and cartoon depictions of cute animals are going gangbusters, sometimes quadrupling in a matter of days.
Among analysts and investors, there’s little consensus as to what’s driving parts of the frenzy. Some posit that speculators are moving from the mainstays to newer, more exciting offshoots, as they often do after big runs. Others see a world awash in cash and ultra-low rates, which ultimately pushes investors toward ever-wonkier assets. A few tokens are backed by strong narratives, such as technological advances at the Cardano and Solana networks.
“There’s no doubt that there’s a lot of excitement in crypto,” said Yoni Assia, founder and chief executive of online exchange eToro. “You can definitely see it within the numbers in the industry, whether it’s looking at total volumes or looking at growth of companies,” he said, adding that “we’ve seen a lot of exuberance in the market.”