How does cryptocurrency increase in value?

Could you elaborate on the mechanisms that drive the appreciation of cryptocurrency values? Is it solely market speculation, or are there fundamental factors at play? Do advancements in blockchain technology, increased adoption by businesses, or a surge in retail investor interest play a significant role? Furthermore, how do economic cycles, inflation rates, and monetary policies of major economies impact the valuation of cryptocurrencies? Understanding these dynamics is crucial for investors seeking to capitalize on the potential growth of this emerging asset class.