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For the first time in history, market cap of cryptocurrencies breached the US$ 2-trillion milestone on Tuesday, April 6, signaling 2x growth in just two months. The surge was guided by mainstream acceptance and rising craze for Bitcoin and Ethereum tokens.
Bitcoin’s market cap alone accounts for half of the overall market value, which stands at than US$ 1.09 trillion, as per CoinDesk data. It has gained as much as 101 per cent year-to-date. Its token price at the time of filing this story is US$ 58,675.
Meanwhile, Ethereum hit a record high of US$ 2151 per token on Tuesday morning, representing a market cap of US$ 245 billion. It has zoomed almost 186 per cent this year.
Here are two Canadian crypto stocks that could rise on the back of the above development:
Hive Blockchain Technologies Ltd. (TSXV: HIVE)
The blockchain firm recently entered a strategic partnership with DeFi Technologies to develop a decentralized finance (DeFi) specialized application using the Ethereum network.
Hive stock has skyrocketed to 2,689.74 per cent in one year and added 127.61 per cent growth in 2021 alone. It is currently trading at C$ 5.44 per common share, down by around 25 per cent against its record high of 7.25 per share (on February 19, 2021).
Its 50-day average trading volume is 6.26 million and the current market cap is C$ 1.995 billion.
The Vancouver- based firm registered a net income of US$ 13.7 million from its crypto operations in the third quarter of fiscal 2021, an increase of 174 per cent compared with US$ 5 million in Q3 F2020.
It held 21,500 Ether tokens and 165 Bitcoins as of December 31, 2020.
Image Source: Kalkine Group @2020
Hut 8 Mining Corp. (TSX: HUT)
On March 31, the crypto mining company announced its partnership with the US-based hashrate manager, Luxor Technology Corporation, to expand its Ethereum mining. Hashrate is unit used to measure of processing power of Bitcoin network.
The company earlier purchased Nvidia’s Cryptocurrency Mining Processors worth US$ 30 million to accelerate its bitcoin mining business.
Hut share price is up 191.40 per cent this year, beating the S&P/TSX Application Software (Sub Industry) Index, which is up 182.10 per cent relatively. Its one-year growth has surged by 1,256 per cent, led by the crypto boom.
It has 3,012 bitcoins in its kitty, including 1,000 bitcoins in a Genesis saving account generating 4 per cent interest yearly.
Hut Mining’s working capital rose as much as 246 per cent to US$75.7 million in 2020, from working capital of C$ 21.9 million at the end of 2019.
