The crypto market capitalization surges to an all-time high of $2 trillion closely following Bitcoin which touched its peak at $1 trillion. According to data and market trackers, gains over the past several months captivate the demand of BTC from both institutional and retail investors.
Crypto Market Cap at $2.02 Trillion By Mid-Afternoon
The crypto market capitalization surpasses the milestone of $2 trillion this year only. Undeniably, the surge was led by Bitcoin, which hit its own milestone by holding at a $1 trillion market cap for one week.
Bitcoin was last up 1.4% at $59,045. Since hitting a lifetime peak of more than $61,000 in mid-March. Analysts said as long as bitcoin stays above $53,000, it will be able to maintain its $1 trillion market cap.
Talking about the second-largest cryptocurrency in terms of market cap, Ethereum was up 1.3% at $2,103. Its market cap was $244 billion on Monday. It hit a record high of $2,144.99 last Friday.
Paolo Ardoino, Chief Technology Officer at crypto exchange Bitfinex 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.”
Bitcoin, a Strong Vote of Confidence for Crypto Assets
Data provider Glassnode, in a report, mentioned the fact that Bitcoin has held the $1 trillion market cap for one week is a “strong vote of confidence for bitcoin and the cryptocurrency asset class as a whole.”
The report added that on-chain activity continues to reinforce Bitcoin’s robust position. With a volume equivalent to over 10% of circulating supply transacting above the $1 trillion thresholds.
The Grayscale Bitcoin Trust, a $35 billion publicly listed investment vehicle that holds Bitcoin, said: “it remains committed to converting to an exchange-traded fund.” In a blog post, Grayscale mentioned that the timing of its transition would depend on the regulatory environment.
The digital coin Bitcoin has surged more than 100% this year, while Ethereum shows gains of nearly 190%. The two main digital currencies have massively outperformed traditional asset classes, bolstered by the entry of mainstream companies and large investors into the cryptocurrency world.