Much like the first week of January 2021 brought us bullish sentiment, the first week of April is no different. This week not only saw Ethereum hit record highs, but also saw the value of the crypto market top $2 trillion for the first time in history. As we hit another milestone in the digital asset industry’s history, let’s explore what led to this one being achieved.
Institutional And Retail Investment In Bitcoin
Last year the pandemic sent many markets crashing, the crypto market being no exception. While Bitcoin and other digital asset markets rose from the ashes, the market experienced an unprecedented influx of both institutional and retail investment. A pioneer in the movement, Michal Saylor, the CEO of MicroStrategy, started acquiring the cryptocurrency in August 2020 and hasn’t slowed down since. After recently making another purchase of the market’s largest asset, Saylor confirmed that MicroStrategy has acquired 91,579 BTC to date, worth over $1 trillion.
Being the first firm to move their company reserves from fiat to crypto, MicroStrategy’s actions were quick to catch on. After this a string of other large corporations started doing the same, inspiring many retail investors to follow suit too. This saw the price of Bitcoin rise dramatically, hitting new all time highs from the end of November right up until as recently as March. This accounts for a large rise in the value of the entire market at the hands of Bitcoin, but what about the other cryptocurrencies?
Ethereum, DeFi And NFTs
Ether, of the Ethereum network, has also witnessed an increasing surge in price, thanks to developments in the ETH 2.0 roadmap, the latest NFT (non-fungible tokens) craze, as well as the swelling DeFi industry. After increasing 181% in just one year, in early April the cryptocurrency reached its highest price to date, $2,152.45. The latest increase in price is what took the entire cryptocurrency market’s value over the $2 trillion mark on 5 April. It has since corrected but is likely to return, according to industry experts.
While Bitcoin leads the pack with over 60% of the entire market’s value share, Ethereum is the next biggest cryptocurrency contributing to the entire market’s value. Ethereum currently is valued at around $240 billion, while the next 3 cryptocurrencies (making up the top 5 in terms of largest market caps at the time of writing) contribute another almost $150 billion. Currently Binance Coin has a market cap of $61 billion, followed by XRP (Ripple) with $44 billion and then the stablecoin Tether, with a market cap of $43 billion. With the top 5 cryptocurrencies making up roughly $1,385,000,000 of the $2 trillion value, that leaves the remaining 9,000 altcoins to make up the difference.
Proving it’s not just Ethereum and Bitcoin contributing to the rise in crypto market value, Paolo Ardoino the chief technology officer at crypto exchange Bitfinex, confirmed that interest in other altcoins has also risen: “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.”
Crypto And The Traditional Financial World
Cryptocurrencies are starting to build a reputation for themselves outside of the blockchain industry, with many Wall Street investors and large firms incorporating Bitcoin and other cryptocurrencies into their portfolios. As the crypto market value tops $2 trillion, the market is now being compared to traditional assets like Apple and Saudi Aramco, who also share the accolade of hitting the $2 trillion mark.
Other companies that are geared toward more traditional financial markets like PayPal and Mastercard have also taken steps to incorporate Bitcoin and other cryptocurrencies into their product offering. PayPal recently announced that users are now able to buy goods using the Checkout With Crypto function, which supports four cryptocurrencies, Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
In just two months, the increase in value of Bitcoin, Ethereum and other altcoins has seen the value of the entire cryptocurrency market double. Brock Pierce, the chairman of the Bitcoin Foundation and cryptocurrency entrepreneur, commented that “The crypto market is facilitating the greatest wealth transfer in the history of the world.” He further stated that wealth was being distributed in ways the world hasn’t seen before.
Crypto Market Tops $2 Trillion For The First Time In History
As another exciting milestone in the cryptocurrency industry is reached, many are looking to cryptocurrencies as a viable investment vehicle as well as a medium of exchange. As more merchants around the world start accepting Bitcoin and other cryptocurrencies, the financial borders are slowly being broken down and financial inclusion is on the rise. If you’re looking to buy cryptocurrencies Oobit provides a seamless experience. Allowing one to go from cash to crypto in just minutes, you can acquire the likes of Bitcoin, Ethereum, XRP and much more for as little as $20.