The cryptocurrency arena has reached a new pinnacle. The industry has a total market cap now exceeding $2 trillion. The news comes after several of the world’s leading altcoins – including Ethereum, Litecoin, Ripple’s XRP and Binance Coin – spiked to new highs after bitcoin once again neared the $60,000 per unit range.
Ethereum and Other Coins Have Jumped Heavily
The cryptocurrency industry’s market cap has so far more than doubled what it was at the beginning of the year. During the month of January, the entire crypto space was valued at approximately $750 billion. The good news is that many analysts believe the current bull run is far from over; in fact, some claim things are just beginning to heat up.
This new rally appears to have been driven largely by both Binance Coin and Ethereum, both of which are highly involved in the world of decentralized finance (defi). While their prices are nothing to brag heavily about, their statuses in the defi space have grown exponentially given how popular the space has become in just the last 12 months alone.
Ethereum has garnered an additional two percent in value, while Binance Coin has added roughly ten percent to its price over the past day. Litecoin also added ten percent, while Ripple’s XRP saw a whopping increase of roughly 35 percent. Alex Kruger – a crypto trader and economist – explained in a recent interview:
I’m expecting continuation upwards in the coming weeks, with bitcoin lagging. The issue for this market is that leverage heats up too easily whenever bitcoin pushes higher. That’s a headwind.
Other analysts are also feeling bullish about the remainder of the year, though they are not as excited as their peers given that many barriers have been broken in the crypto space as of late. Mati Greenspan – the founder of Quantum Economics – mentioned in a statement that while he is pleased with the progress the crypto space has made thus far, he feels $2 trillion is just the tip of the iceberg, and that sooner than we think, we will be celebrating something higher.
It’s a fun milestone to celebrate, but as we know, quite meaningless. The crypto market will continue to grow, and more non-crypto related markets will migrate to digital assets. It’s a very good time for the industry.
Things Are Becoming More Legit
In addition, blockchain appears to be heading deeper into mainstream, more accepted territory considering companies such as PayPal and Tesla are now accepting bitcoin and other forms of crypto as payment methods. Paolo Ardoino – chief tech officer with Bitfinex – says:
With the crypto market cap exceeding $2 trillion, it is important to note that momentum and interest has 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.