This article was written exclusively for Investing.com.
- Watching the trending cryptos in real-time
- Over 12,000 tokens and rising
- Ariva has been eratic
- Bullish action in Gravitoken: a mirage
- Only invest what you are prepared to lose
Last week’s volatility in markets across all asset classes did not exclude the highly volatile cryptocurrencies. Risk is always a function of any potential reward, making for wild price swings in the cryptos.
Meanwhile, the incredible returns from the leading tokens over the past years have ignited a speculative frenzy. A growing number of market participants have been throwing capital at emerging crypto coins in an effort to find the next or . Since demand fosters supply, the number of new tokens coming to market each day has grown exponentially over the past years.
In recent months, we’ve looked at many top-tier cryptocurrencies because they offer the best chance for liquidity, which allows market participants to buy and sell on a narrow bid-offer spread. The spread between bids and offers is also a function of price variance, so even the most liquid cryptos often experience wide spreads, leading to price vacuums higher or lower.
This week, we will look at two emerging cryptos that have been trending over the past weeks because of increased activity. Ariva (ARV) and Gravitoken (GRV) are low in the crypto hierarchy, but though they’re struggling to make their marks, the price action on each has recently been bullish.
Of course, never invest more than you can afford to lose in any cryptocurrency, as the risks of a total loss remain high in the asset class.
Watching the trending cryptos in real-time
I find the “trending” section of the CoinMarketCap website particularly useful for identifying the cryptos experiencing the most action. On Tuesday, Sept. 28, , the fourth leading cryptocurrency overall, led the trending section:
Arata (ARATA), the 1,192nd leading crypto, was second on the trending list with something called BabySpaceFloki (BSF), the 2,864th crypto by market cap also experiencing lots of action.
The trending list constantly changes, as do the rankings by market cap.
Over 12,000 tokens and rising
At the end of 2020, there were 8,153 cryptocurrencies in the asset class. On Sept. 28, 2021, the number stood at 12,180, a 4,027 or 49.4% increase over just under nine months.
The number of tokens rises each day. The incredible returns from Bitcoin, Ethereum, and many other cryptos that burst on the scene since around 2010 have caused speculative demand for the next token that will offer massive financial rewards.
Moreover, technological innovation has generated new tokens coming to market with novel utility. The asset class has become a workshop for innovative ideas with valuable feedback. When the market embraces an idea, the associated token can soar in value.
CoinMarketCap has another feature I like to watch; the recently added section highlights the newest additions to the asset class.
The chart shows the four tokens added over the past twenty-four hours. It also highlights the most recently added cryptocurrencies, their market caps, volume, and blockchain.
Today, we are going to look at two cryptos that are nowhere near the leadership board.
Ariva has been eratic
At time of writing, 8:30 AM PST on Tuesday, Sept. 28, Ariva was the 948th leading cryptocurrency. While ARV is in the top 8.5% of the asset class, its market cap was at the $9,621,794 level, with the token trading at $0.0001885. With the total market cap at the $1.837 trillion level, the ARV token hardly registers on the scale of influence.
At time of publication on Sept. 30, ARV had moved even higher. It had risen to the 854th position and was trading at $0.00023113:
Ariva is a novel token created for the travel business. The Ariva website highlights the cryptocurrency is for:
“Active use in global and local tourism and travel networks in the near future.”
ARV aims to bring the tourism industry under the cryptocurrency umbrella.
ARV is new on the scene. The token began trading on Sept. 1, 2021.
The trend in value has been bullish in September, with the token reaching a high of $0.0003412 on Sept. 21 before pulling back to below the $0.00019 level on Sept. 28 before reversing. On Sept. 1, ARV began trading at $0.00002661.
Bullish action in Gravitoken: a mirage
On Sept. 28, Gravitoken (GRV) was ranked 3045th in the crypto hierarchy. GRV may only be in the top one-third of the asset class, but the appreciation has been incredible over the past weeks.
Gravitoken has a truly novel marketing approach. Its website says it is:
“The token designed to #DeFiGRAVITY and keep going up.”
GRV operates using “negative rebasing” to reduce the total supply of tokens in order to increase the value of the tokens over time. The catch is the number of tokens owned can decline dramatically, though the value of a whole token will increase.
Meanwhile, the price chart is misleading.
The chart shows since Sept. 15, 2021, GRV appreciated from $0.0000007623 to over $22 per token on Sept. 28. At time of publication on Sept. 30, the price was even higher, $63.77, a stunning 190% rise in just two days.
Tomorrow the price will increase further, but the number of tokens owners hold will decrease if the market cap does not increase. GRV is a bullish mirage—an innovative token with a novel twist.
Only invest what you are prepared to lose
I love investigating the newest innovations from the cryptocurrency asset class. Blockchain has become a fertile ground for products that stretch the imagination.
Still, as you watch the newest tokens come to market and are tempted to invest, only put up the capital you are willing to lose.
Ideas and new products are intellectually stimulating, but the odds favor eventual failure rather than success for the vast majority of new cryptocurrencies coming to market each day.