By
Steve Muchoki
April 23rd, 2024
The digital currency ecosystem is a very volatile one, and what seems to constitute the basis for the current growth trend today may not necessarily be fueling the market momentum tomorrow.
Many crypto stocks are seeing an impressive start to the year, riding on the back of the sustained rally in the broader digital currency ecosystem. The combined market capitalization of the cryptocurrency industry is currently pegged at $995.26 billion, up 0.67% in the past 24 hours after surging as high as $1.03 trillion earlier this week.
Crypto stocks including that of American cryptocurrency trading platform, Coinbase Global Inc (NASDAQ: COIN) are benefitting from the ongoing price surge. From its lowest trading level of $31.95 printed on Jan. 6, COIN has shot up by about 69% to $54.14, its closing price at the close of trading on Tuesday where it recorded an 8.32% upshot.
American business intelligence and software firm, MicroStrategy Incorporated (NASDAQ: MSTR) is also another prominent beneficiary. For MicroStrategy, its shares closed at $235.92 after recording a similar 8.73% growth when compared with those of Coinbase. At this growth level, MicroStrategy has parred off its losses and is up by a massive 74% since its stock hit its All-Time Low of $135 on December 29.
Jack Dorsey’s fintech firm, Block Inc (NYSE: SQ) also saw its shares jump 4.32% after the close of trading on December 17, with the stock trading at $75.10. SQ has rebounded by about 27% from its lowest price point of $59 attained toward the end of last year.
The crypto winter hit crypto-related stocks in a different way as concerns surrounding inflation further aggravated the underlying pain the companies were facing. While the damning shares plunge was the biggest manifestation of these firms, outfits like Coinbase explored a proactive way to manage its costs and laid off about 20% of its workforce.
Crypto Stocks Resurgence: How Far to Go
The digital currency ecosystem is a very volatile one, and what seems to constitute the basis for the current growth trend today may not necessarily be fueling the market momentum tomorrow. Despite the push-up from their all-time lows, most of these crypto stocks are still a far cry away from retesting their All-Time Highs (ATHs).
Coinbase for instance debuted on the Nasdaq Global Select Market in April 2021 at a price of over $350. Even with the current growth records, the stock is still about 80% away from retesting these levels. The same goes for other known stocks as a financial analyst
Genevieve Roch-Decter, CFA tweeted last week, Silvergate Capital Corp (NYSE: SI) is down 90.8% from its ATH.
Crypto stocks over the last year:
Voyager -99.7%
Silvergate -90.8%
Marathon Digital -83.1%
Coinbase -82.3%
HIVE Blockchain -81.3%
MicroStrategy -63.9%— Genevieve Roch-Decter, CFA (@GRDecter) January 10, 2023
Voyager Digital, one of the most renowned crypto Exchange Traded Funds (ETF) providers also has about a 90% deficit to cover in order to hit its previous milestone. The same goes for crypto miner Marathon Digital Holdings Inc (NASDAQ: MARA) which is still down by about 83%.
These growth actions model that of Bitcoin (BTC) which needs to grow by about 69% growth from its current level to retest its ATH of $68,789.63 attained back in November 2019.