Crypto Market Cap Doubles to a Staggering $2.3 Trillion as ETH Spikes
The general market cap of 9,541 coins had briefly achieved the $2.3 trillion mark on Monday, according to crypto statistics tracker CoinMarketCap. Ethereum drove the rally marking yet another ATH of nearly $3,550. The second-largest digital coin attained an all-time high on 6 May after a jump of about 8% in the last 24 hours.
The gain in momentum had begun in the first quarter of 2020 as investors’ craze around Bitcoin and other cryptocurrencies continued. In just almost three months, the market capitalization of the cryptocurrency market has doubled.
Several institutional investors and retail began investing in cryptocurrency as a hedge against their traditional investments. Facebook, Paypal, Tesla, Visa, Mastercard, many hedge funds, and family institutions have shown a massive interest in this new asset class.
Investment banks like Morgan Stanley and JPMorgan have also begun offering their premium clients access to bitcoin funds. The institutional interest in crypto has been among the key drivers for its success.
Driving the Market Cap
Bitcoin, the largest digital currency, accounts for over 50% of the entire cryptocurrency market capitalization. Last month, the crypto hit a record high of above $61,000.
The digital coin was trading at about $58,800 at the beginning of the week. The leading crypto failed to overcome that particular level and has declined by almost $1,000 since then. Bitcoin has rallied over 100% this year alone, which has helped drive the cryptocurrency market higher.
Crypto custody leader NYDIG, a subsidiary of $10 billion New York-based asset manager Stone Ridge recently announced that it would collaborate with Fidelity National Information Services to allow US banks to offer Bitcoin.
The move will make the leading cryptocurrency even easier to get to millions of US customers, with hundreds of small banks already enrolled in the scheme.
Nearing Mainstream Adoption
The alternative coins also plunged a bit in the past few days but, similarly to their leader, have returned to charting gains.
Cardano is up more than 13% in the past 24 hours and currently sitting pretty at $1.50. It is now targeting to hit $2.
Bitcoin Cash is the most significant gainer from the top ten, following a 23% surge to above $1,300 as Ethereum Classic is now up more than 170 percent over the last seven days. It is currently trading at just above $90, having hit a new all-time high of $100.03 yesterday.
Ripple (15%), Polkadot (7%), Binance Coin (3%), and Litecoin (1%) are also in the green.
Further, Uniswap, Chainlink, and Dogecoin have retraced since yesterday. Doge is down six percent over the last 24 hours.