BitTorrent (BTT), the native token of the popular peer-to-peer file-sharing protocol BitTorrent, has surged nearly 30% in the past 24 hours.
The rally took the valuation of BTT to over $5.2 billion, making it the 24th most valuable cryptocurrency by market capitalization. What’s more impressive, the token’s value has increased more than ten-fold in the past two months.
Is there any catalyst behind the BTT rally?
There has been no clear fundamental catalyst behind the BTT rally to date. Nevertheless, the token has demonstrated strong technical momentum since it spiked by nearly 120% within a week in mid-March.
Since then, the volume of BTT has continuously increased, causing it to garner more momentum as it surged past its all-time high.
Several factors could have boosted BTT in the past several days, however, namely staking on Poloniex, TRON founder Justin Sun’s high-profile purchases of NFTs, and rising sentiment on social media.
On March 25, Poloniex Exchange, which was acquired by a consortium of buyers which included Justin Sun, which Cointelegraph previously reported, announced staking on exchange with BTT.
The staking announcement from Poloniex could have added to the buyer demand for BTT because users could earn rewards by buying and staking BTT. The exchange said:
“With Poloniex staking, customers earn rewards while maintaining the flexibility to trade, deposit, and withdraw at all times. Along with this flexibility, customers can continue to earn staking rewards right up to the moment they decide to trade their funds into a different asset.”
Additionally, BitTorrent has been pushing the narrative of Sun buying high-profile NFTs as of late.
On March 29, BitTorrent tweeted:
“Justin Sun announced the official establishment of the #JUST NFT Fund and the Plan to hire a top tier artist as the chief NFT advisor of JUST #NFT Fund. Join us now in the marvelous adventure navigated by JUST #NFT!”
Considering that BTT is a part of the Tron ecosystem, the positive sentiment around NFTs and the focus of Sun on the NFT market may have had a positive effect on the value of BTT.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.