Think these last few months have been rough for stock traders?
The digital currency traders have had it much worse.
BTC was cut in half and still trades 46% off of its November highs.
Ethereum fell 55%.
And the once-popular Dogecoin is currently down 81% from its peak.
In my opinion, they are not a viable replacement for dollars…
At least, not yet.
But they do have a place in the market…
Yesterday, we talked about the boom in non-fungible token (NFT) art and society’s rapid transition toward a digital existence.
When transacting business in this new digital world, digital currencies are king.
Where Digital Currencies Are King
With so many different digital currencies to pick from, the question the becomes…
Which of them will be number one?
BTC is, no doubt, the 1,000-pound gorilla in the blockchain server room.
But personally, I don’t think it will be number one forever.
Simply put, BTC is just money. It serves no other purpose (unless I’m completely missing something, which is possible).
Ethereum, on the other hand, represents more than just money.
Remember those Bored Ape Yacht Club NFTs that celebrities have been snatching up for seven-figure sums?
What that means is that you have to use that digital currency to buy and sell those NFTs.
A New Kind of Reserve Currency
It’s a similar story for traditional currencies and the same reason the US dollar (USD) has been strong for decades…
The USD is the world’s reserve currency.
When a French company, for example, buys a million gallons of Norwegian natural gas, guess what? They do the deal in US dollars!
This creates a huge demand for the greenback, thus supporting its value.
So, how do you get involved?
Well, if you’re thinking about buying some but don’t have a digital wallet account with Coinbase or one of the other exchanges, don’t worry.
You can buy the Grayscale Ethereum Trust (ETHE) in any traditional brokerage account or individual retirement account (IRA).
It trades just like a stock.
From a technical perspective, it looks horrible…
However, shares of ETHE could be trading near long-term support at its uptrend line.
ETHE is trying to bounce off that two-year trendline, and there is heavy volume in the $17-$21 range.
Solana (SOL/USD) is another digital currency seeing a huge surge in volume because of the activity in the NFT markets.
As I told you yesterday, this is just the beginning of a massive new megatrend centered around and within the metaverse.
More than ever, I am convinced we are going to see huge changes in the coming years.
I’ll be covering the metaverse and the digital currencies that will drive it in great detail as this phenomenon evolves.
Embrace the surge,
Editor, Stock Surge Daily