What happened
This week, Ethereum (CRYPTO:ETH), Bitcoin Cash (CRYPTO:BCH), and Litecoin (CRYPTO:LTC) each saw impressive gains. These tokens appreciated between 20% and 47% at their intraday weekly highs. Indeed, in the crypto world, such moves aren’t necessarily surprising. However, the common catalyst driving these three cryptocurrencies higher may be worth looking at.
The catalyst in question happens to be a key announcement from AMC Entertainment (NYSE:AMC). The theater chain announced in September that the company would soon accept these three cryptocurrencies at theaters across the country.
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However, via a tweet on Thursday, AMC CEO Adam Aron pointed out that these three cryptocurrencies are available right now for settling payments at AMC theaters.
Unsurprisingly, Ethereum, Bitcoin Cash, and Litecoin all popped on the news.
So what
Currently, the option for patrons to pay for tickets and other AMC-related purchases in cryptocurrency is only available online. However, according to initial data from AMC’s CEO, 14% of all online transactions took the form of crypto since the announcement.
This is certainly a big deal for crypto enthusiasts betting on wider adoption among these core cryptocurrencies. As more data rolls in with regards to the scale of crypto usage for online purchases, investors may be able to put a more accurate value on the network effects and what utility such cryptocurrencies actually have for real-world commercial applications.
Now what
This recent high-profile adoption of cryptocurrency for online payments by a large corporation is a positive signal for crypto bulls. This goes double for those heavily invested in Litecoin, Bitcoin Cash, or Ethereum.
As real-world use cases continue to emerge and adoption becomes more widespread, the potential for continued capital flows into the crypto sector increases. Investors in these three top cryptocurrencies appear to like the network effects created by this week’s announcement. Accordingly, these three cryptocurrencies are likely to be on watch again in the coming weeks.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.