In case you haven't noticed, cryptocurrencies are smoking-hot once again. This past weekend, the combined market cap of the more than 8,400 investable crypto tokens surpassed $1.5 trillion. That's almost double the market value of the previous cryptocurrency peak in January 2018.
That Bitcoin (CRYPTO:BTC) is leading the way should come as no surprise. The largest and most popular digital currency came within $500 of the $50,000 mark on Feb. 14, and accounts for $915 billion of crypto's $1.5 trillion valuation.
Image source: Getty Images.
Bitcoin continues to gain attention for its growing levels of adoption. For instance, Tesla Motors recently bought $1.5 billion worth of Bitcoin to hold on its balance sheet, and plans to accept Bitcoin as payment in countries where it's allowed by law. Also, Mastercard announced last week that it would begin supporting select digital currencies, including Bitcoin.
The world's largest cryptocurrency is also often lauded for its scarcity. No more than 21 million Bitcoin tokens can be mined, which makes it a perceived hedge against the ever-rising U.S. monetary supply. As the true value of the U.S. dollar declines, it's believed that Bitcoin will appreciate.
Over the trailing three months, Bitcoin has nearly tripled (197%), which is a 187-percentage-point outperformance of the benchmark S&P 500. Believe it or not, this 197% gain pales in comparison to the returns a handful of other popular cryptocurrencies delivered over the past three months.
Image source: Getty Images.Dogecoin: +2,330%
Over the trailing three months, cryptocurrency Dogecoin (CRYPTO:DOGE) has run circles around Bitcoin, with a return of 2,330%. As of this past weekend, it had become the 12th-largest digital token by market cap ($7.5 billion).
If you're wondering what caused Dogecoin's recent monster rally, look no further than Reddit and Twitter, where it's...