Cryptocurrency investors continue to hope that the worst days for the industry are behind us. After several months of general declines and a few weeks in particular of especially rough performance, several of the top digital tokens climbed by a sizable margin in the past few days. Indeed, over a 48-hour period in the first days of July, the cryptocurrency space as a whole gained more than $40 billion in total value. Led by bitcoin (BTC), ether (ETH), ripple and bitcoin cash, the space headed into the second half of the year appearing to be on the mend. What might have caused this turnaround?

Volumes Up

One of the most important factors in the 5% to 10% gains across many of the leading digital currencies was trading volume. Bitcoin and ether both saw their volumes rise unexpectedly heading into July. Because many of the other digital currencies are still closely tied to the performance of these two top currencies, it's unsurprising that a boost to BTC and ETH would also inspire gains down the line as well.

As of July 3, bitcoin's trading volume remained above $4.6 billion, according to CCN.com. Ether, on the other hand, saw its volume stabilize at $1.7 billion. This surge in volume may have long-term benefits for the cryptocurrency space as a whole. While the past several weeks have seen small-scale rallies, analysts have cautioned that low volumes across the board would prevent those corrections from really taking hold. Last week, the market experienced both a solid increase in trade volume as well as two strong days for value increase. In response, investors have headed into the month of July with a greater degree of optimism about the crypto space than they have had in a long time.

Ripple, Bitcoin Cash, Others

Ripple, bitcoin cash and cardano were among the top performing digital tokens during the two-day rally. Cardano saw a daily increase of 16%. At the same time, tether saw its trade volume drop significantly from a yearly high of $4.5 billion recorded on July 1. This may suggest that investors are more interested in trading between cryptocurrencies than from cryptocurrencies to stable coins for the time being.

While the two-day rally has shown promise of potential surges to come, there are still many reasons to be cautious as well.

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.