The market capitalization of the global cryptocurrency market has increased to an all-time high record of US$2 trillion on Monday. Data and market trackers CoinGecko and Blockfolio show that the crypto market’s market cap touched US$2.02 trillion by mid-afternoon on April 5, 2021.
This surge was led by Bitcoin (BTC), whose market cap was hovering over US$1 trillion for the last 1-week. Analysts believe that BTC will maintain the US$1 trillion market capitalization as long as the BTC/USD pair hovers above the US$53,000 price point.
Ethereum (ETH) also contributed to the phenomenal rise of the market cap of the global crypto market. ETH price increased by 1.3% to reach US$2,103 on Monday, making its market cap hit US$244 billion.
The chief technology officer of Bitfinex crypto exchange, Paolo Ardoino, said:
“Momentum and interest have begun to expand beyond bitcoin and ethereum...As the industry continues to mature, we expect more blockchain-based applications to be introduced to the world, and coinciding with that, a surge of interest around other alternative assets...as they become more market-ready.”
Blockchain data provider Glassnode’s research report said that maintaining a US$1 trillion market cap for one week is a “strong vote of confidence for bitcoin and the cryptocurrency asset class as a whole.”
The concerned report went on to say that on-chain activity points to a continued reinforcing robust position of Bitcoin. It says BTC’s volume is equivalent to more than 10% of circulating supply transacting above the $1 trillion thresholds. While BTC price has increased by over 100%, ETH price has increased by over 190% in 2021 YTD.
With the entry of more mainstream companies and large investors such as Tesla and BNY Mellon, Bitcoin, Ethereum, and other altcoins will keep outperforming other asset classes in the future.
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