Why are cryptocurrencies so expensive?

The question that often perplexes many in the financial world is: why are cryptocurrencies so expensive? To unpack this, one must first delve into the underlying factors that drive their valuation. Firstly, the scarcity principle, similar to gold, ensures that there's a limited supply of many cryptocurrencies, thus increasing their perceived value. Secondly, the decentralized nature of these digital assets means they're not subject to the whims of traditional financial institutions or governments, giving them an added layer of intrigue and perceived security. Furthermore, the ever-evolving blockchain technology that powers cryptocurrencies promises innovation and disruption in various industries, driving investor interest and demand. Lastly, market sentiment and the fear of missing out (FOMO) factor can drive prices upward, as more people flock to the crypto market. But, the real question remains: is this valuation sustainable, or are we merely witnessing a speculative bubble?