Thanks to an increasing interest by investors and masses alike, the global cryptocurrency market cap hits $1 trillion. For an invention that’s barely 12 years old, this is a magnificent feat, to say the least.
The data coming from CoinGecko states the global market cap for all cryptocurrencies is at $1.003 trillion. Bitcoin, the largest and most popular cryptocurrency tops the chart with $676 billion. Ethereum the second-biggest cryptocurrency follows Bitcoin with a $136 billion market cap.
The total market capitalization has seen an astronomical surge. The last time cryptocurrency’s market cap came close to the $1 trillion mark was two years back in January 2018. In January 2018, the total market capitalization of cryptocurrencies touched nearly $800 billion. This is the first time in the history of cryptocurrencies that the market cap has crossed the $1 trillion mark.
Let’s try to put this in context. With this $1 trillion feat, cryptocurrencies are now valued half as much as the world’s most valuable company Apple. Cryptocurrencies are also now worth more than the Swiss economy. The Swiss economy is the haven for the world’s biggest financial institutions and possesses the biggest gold vaults.
Cryptocurrency’s metaphorical mascot Bitcoin(BTC) has gained 25% in January 2021. It is followed by the 300% plus gain Bitcoin saw in the year 2020. Ethereum on the other hand, which walks hand in hand with its tandem brother bitcoin, has also soared up and above in the last 12 months. After being traded above $1,200 on Wednesday, Ethereum has gained roughly 860%. It was the first time since early 2018 that Ethereum traded above $1,200.
Over the last one year, the stratospheric surge of bitcoin and other cryptocurrencies like Ethereum has come because of increasing investment actions. Some of these investments include one from MicroStrategy, a technology firm who have swallowed over 70,000 BTC. London based Ruffer investment is another firm that dumped $740 million into bitcoin in 2020.
Bitcoin is known to swing wild and free when it comes to value. On Saturday, the cryptocurrency passed the $30,000 mark. After its bullish rally, bitcoin fell more than 5% on Friday. This comes just one day after it crossed the $40,000 mark. On Bitstamp exchange, the world’s most popular cryptocurrency plummeted to $36,750.
Ethereum has been faring the same way as well. On Friday, Ethereum sank more than 10% to $1,087.
In a world of low-returns, investors are interested in cryptocurrency for its promise of quick gain. It would be interesting to see if cryptocurrencies start again on their bullish rally. Or reach a point where people will look back at this period as “the cryptocurrency pandemic bubble.”