This article was written exclusively for Investing.com
- Cryptos back in the spotlight as Bitcoin and Ethereum recover
- Speculative frenzy gets new life
- Number of tokens continues to grow
- Theta Fuel: next-generation video delivery
- Waves (WAVES)
In April and May, Bitcoin and Ethereum rose to new all-time highs. In May and June, the leading cryptocurrencies collapsed.
Bitcoin fell from $65,520 to a low of $28,800 from mid-April to late June, a 56% decline that gave almost all of the 2021 gains. Ethereum’s drop was equally dramatic as it plunged from $4,406.50 in mid-May to a low of $1,967.75 in late June. Ethereum fell over 55%.
The parabolic price action came to a sudden end, but it did not signal the end of the cryptocurrency revolution. The burgeoning asset class has shown resilience as both leaders have staged impressive comebacks over the past weeks.
Meanwhile, the recoveries in Bitcoin and Ethereum are likely to stoke a return of the speculative frenzy we witnessed earlier this year. As of Aug. 10, over 11,200 tokens populate the cryptocurrency asset class. While the top two attract the most attention, speculators are combing through the many others looking for diamonds in the rough that can deliver and turn a small investment into untold wealth.
Theta Fuel (TFUEL) and Waves (WAVES) are two highly ranked cryptos with market caps putting them in the elite class of the top 65 tokens with higher values than 99.4% of the others competing for the spotlight.
Cryptos back in the spotlight as Bitcoin and Ethereum recover
Earlier this year, the price action got ugly in cryptocurrency land. But prices have bounced sharply over the past weeks. 
Source: CQG
As the weekly chart highlights, Bitcoin rallied from $28,800 in late July to a high of $46,800 per token this week, a 62.5% recovery. 
Source: CQG
Ethereum futures rose from $1,967.75 to its most recent high at $3,250.50 or over 65%. The level of volatility has been head spinning in the crypto asset class.
Speculative frenzy gets new life
Greed is a powerful emotion, and nothing turbocharges greed like a bull market. As Bitcoin, Ethereum, and many other cryptos have experienced substantial recoveries, the demand for the next token that will explode higher escalates.
Greed’s partner is fear. The declines from the April and May highs sent shivers down the spines of weaker market participants looking for profits but not necessarily in the ideological crypto camp.
While the ideologues looked at the correction as an opportunity, those driven by emotions ran for the hills. The recent price action validates the believers, and the emotional component of the market is likely to hop back on the wagon now that the trends are higher.
Number of tokens continues to grow
While cryptocurrency values hit a significant speedbump and the asset class’s market cap shrank, the number of new tokens continued to climb. At the end of the first half of 2021, 10,725 tokens populated the asset class. As of Aug. 10, the number stood at 11,208, 4.5% higher and rising each day.
The growth in the number of tokens reflects the underlying fundamental demand for new instruments. Much of the demand is speculatively driven, as volatility creates a speculative wonderland for trend-following traders and those who let their emotions guide them. Bull markets are like magnets for emotional market participants.
Theta Fuel (TFUEL) and Waves (WAVES) are two tokens that could attract buyers now that Bitcoin and Ethereum prices have returned to an upswing.
Theta Fuel: next-generation video delivery
TFUEL is one of the two native tokens on the Theta blockchain. It serves as the utility token for decentralized video and data delivery and acts as a gas token.
A gas token reflects the amount of a fee to run a transaction. TFUEL’s website states the blockchain is:
“Next-generation video delivery powered by you.”
On Aug. 10, TFUEL was trading at 30 cents with a market cap of just over $1.57 billion, making it the 65th leading cryptocurrency. As of publication, its value has increased to 33 cents, giving it a market cap of $1.76 billion, boosting it to 62nd place.
Source: CoinMarketCap
As the chart highlights, TFUEL has traded as low as below one-quarter of one cent and as high as nearly 60 cents per token since April 2019. At 33 cents, it is in the middle of its trading range and has critical mass as the 62nd crypto in the hierarchy.
Waves: gateway blockchain protocol
WAVES is a cryptocurrency that operates on a blockchain that enables users to create and launch custom crypto tokens without the need for extensive smart contract programming. The WAVES website states it is an:
“all-encompassing gateway blockchain protocol advancing technological frontiers of today for pioneering developers of tomorrow.”
WAVES is currently the 57th leading cryptocurrency. At $18.36 per token at time of publication, its market cap stood at the $1.95 billion level.
Source: CoinMarketCap
The chart illustrates a range of under 16 cents to $35.90 per token since July 2016. At over five years old, WAVES is an old-timer in the cryptocurrency asset class. WAVES was trading in the middle of its range at time of publication.
When investing in any cryptocurrency, only use the capital you are willing to lose. The odds of success are higher with the established tokens, and TFUEL and WAVES have distinguished themselves as elite instruments with their respective market caps.