Thursday, May 13, 2021

BitTorrent soars 30% to new all-time high, $5B market cap: What’s behind the rally?


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BitTorrent Token (BTT), the native token of the favored peer-to-peer file-sharing protocol BitTorrent, has surged practically 30% up to now 24 hours.

The rally took the valuation of BTT to over $5.2 billion, making it the Twenty fourth-most-valuable cryptocurrency by market capitalization. What’s extra spectacular, the token’s worth has elevated greater than tenfold up to now two months. 

BTT/USDT 4-hour value chart (Binance). Supply: TradingView

Is there any catalyst behind the BTT rally?

There was no clear elementary catalyst behind the BTT rally so far. Nonetheless, the token has demonstrated robust technical momentum because it spiked by practically 120% inside every week in mid-March.

Since then, the amount of BTT has constantly elevated, inflicting it to garner extra momentum because it surged previous its all-time excessive.

A number of components might have boosted the worth of BTT up to now a number of days, nevertheless — specifically, staking on Poloniex, Tron founder Justin Solar’s high-profile purchases of NFTs and rising sentiment on social media.

On March 25, crypto alternate Poloniex — which, as Cointelegraph reported, was acquired by a consortium of consumers that included Solar — introduced BTT staking.

The staking announcement from Poloniex might have added to the customer demand for BitTorrent Token as a result of customers can earn rewards by shopping for and staking BTT. The alternate said:

“With Poloniex staking, clients earn rewards whereas sustaining the flexibleness to commerce, deposit, and withdraw always. Together with this flexibility, clients can proceed to earn staking rewards proper up-to-the-minute they determine to commerce their funds into a unique asset.”

Moreover, BitTorrent has been pushing the narrative of Solar shopping for high-profile NFTs as of late.

On March 29, BitTorrent tweeted:

“Justin Solar introduced the official institution of the #JUST NFT Fund and the Plan to rent a high tier artist because the chief NFT advisor of JUST #NFT Fund. Be part of us now within the marvelous journey navigated by JUST #NFT!”

Contemplating that BitTorrent Token is part of the Tron ecosystem, the optimistic sentiment round NFTs and the main target of Solar on the NFT market might have had a optimistic impact on the worth of BTT.

Social media sentiment spikes

Lastly, the every day sentiment rating versus the tweet quantity for BTT surged by 377% starting March 30, proper earlier than the worth of BTT started to rally.

BTT every day sentiment rating vs. tweet quantity. Supply: The Tie

Thus, the brand new BTT all-time excessive seems to be the results of a technical breakout not solely pushed by robust social media momentum but in addition the rebounding value of Bitcoin (BTC) in addition to altcoins throughout the board. 

As Cointelegraph reported, Bitcoin’s market dominance has dropped below 60%, while the total market capitalization of altcoins reached a new all-time high of $855 billion on March 31.