The recent bullish momentum in the crypto markets has interesting consequences. For Basic Attention Token, the highest market cap since June of 2019 has now been reached.
The Rise of Basic Attention Token
It is interesting to note how different crypto assets respond to market conditions. Bitcoin and Ethereum have been battered in recent years. In turn, most alternative markets, assets, and tokens went through a very similar price trend. There was not much to be excited about throughout most of 2018 and nearly all of 2019.
In the case of Basic Attention Token, things are looking up. It too has benefited a lot from recent bullish momentum. As prices continue to rise, so do the market capitalizations of individual projects. For BAT, there now is a market cap that is on par with that of mid-June 2019.
A very bullish trend, further confirming crypto assets are in a good place. One has to keep in mind that all of this momentum stands or falls with Bitcoin. If the world’s leading cryptocurrency loses momentum above $10,000, all other markets will drop significantly. So far, there is no reason to panic as of yet. However, the volatility of these markets can occur when people least expect it.
Aligning Factors Work in its Favor
Many different facets make up the market capitalization of any project. In the cryptocurrency space, the circulating supply will often impact the market cap. More coins or tokens being brought into circulation simply increase the overall price.
That being said, an inflationary supply can also drive prices down. Under the current bullish market conditions, that seems rather unlikely to happen. Even so, it is another factor to take into account at all times.
For Basic Attention Token, there has been a steady increase in supply. That is normal, as most of it is linked to the usage of the Brave browser. As more people use the browser and earn rewards, overall liquidity will increase as well. So far, the BAT supply has not triggered any major decline in price either.