As cryptocurrencies continue gaining steam, crypto companies raised capital worth $8.2 billion in the third quarter of 2021.
Mason Nystrom, a research analyst at MessariCrypto, explained:
“Total Q3 crypto company fundraising surpassed over 300 funding rounds accounting for $8.2 billion dollars.”
Centralized finance (CeFi), whose use cases include earning interest on savings, borrowing money, and spending with a crypto debit card, took the lion’s share with $4.1 billion, followed by infrastructure and non-fungible tokens (NFTs) at $2 billion and $1.4 billion, respectively.
Web 3 and decentralized finance (DeFi) took the fourth and fifth position with $410 million and $342 million, respectively.
This study shows that crypto adoption continues to gain traction as more companies seek to enter this space.
Furthermore, crypto users are upward because Coinbase has emerged as the most sought after iPhone app, surpassing social media applications like TikTok and Instagram. Coinbase is a leading American crypto exchange.
Where is Bitcoin heading?
After surging from lows of $28K to highs of $66,900 in three months, Bitcoin (BTC) has shown how a paradigm shift can be witnessed in this market.
Bitcoin has been correcting since it hit a new all-time high (ATH) of $66,900 on October 20. The leading cryptocurrency has been down 9.13% in the last seven days to hit $60,493, according to CoinMarketCap.
Reportedly, this trend has been triggered by long-term BTC traders taking profits.
Some analysts believe that it might drop to the $57K and $58K levels. Market analyst Michael van de Poppe noted:
“Bitcoin couldn’t break through $63.6K and tests the other side of the range. Might be dropping another time if $61.6K can’t break, and then I’m looking at $58K next.”
On the other hand, crypto trader Joseph Young said:
“Bitcoin is at $59K~$60K but doesn’t feel like a blow off top at all. – Overall leverage is a bit high but not very high – Decent support – Strong fundamental news coming from Asia – Institutional catalysts continue to emerge. Eyes on $57K but not worried yet.”
As crypto adoption continues experiencing an uptick, it remains to be seen how the top cryptocurrency plays out in the short term.
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