Yesterday, the cryptocurrency market capitalization surged to an all-time peak of $2 trillion. The crypto market cap was at $2.02 trillion by mid-afternoon. According to analysts as long as bitcoin stays beyond the $53,000 mark, a $1 trillion market cap will be maintained.
The rise in the crypto market cap was followed by bitcoin. The favored digital currency hit its own milestone by holding the $1 trillion market cap for an entire one week. At $59,045, Bitcoin was last up by 1.4%. Also, it has hit a lifetime peak of more than $61,000 in mid-March.
At $2,103, the second-largest cryptocurrency in terms of market cap, Ethereum was up by 1.3%. On Monday, its market cap was $244 billion. Interestingly on last Friday, it hit a record high of $2,144.99.
Interest and momentum have started to expand beyond Ethereum and bitcoin. As the industry continues to grow, more blockchain-based applications can be expected to be introduced worldwide. Coinciding with that, there will be a gush of interest around other alternative assets.
A research report shows that bitcoin holding the $1 trillion market cap for a week indicates a strong vote of confidence for the cryptocurrency asset and bitcoin as a whole.
The report further shows that on-chain activity continues to reinforce bitcoin’s robust position. This will be done with an amount equal to over 10% of circulating supply transaction beyond the $1 trillion threshold.
This year, bitcoin has risen more than 100%, whereas Ethereum has seen 190% growth. Both these digital currencies have hugely performed better than traditional asset classes. This is supported by the introduction of large investors and mainstream companies into the cryptocurrency market. This includes noteworthy names like BNY Mellon and Tesla Inc.