The rapid growth in the value of Bitcoin and Ethereum over the past few weeks has brought with it a lot of positive news and changes.
For example, the first cryptocurrency previously surpassed Warren Buffett’s Berkshire Hathaway in terms of capitalization, and Ethereum is now in the top 100 of the world’s largest assets. In addition, quite recently, BTC regained its leadership in terms of the amount of funds transferred through the network.
A very important event has happened in the world of cryptocurrencies today. The market capitalization of all coins – that is, the product of their number by the rate – has exceeded the equivalent of a trillion dollars. Accordingly, all cryptocurrencies in the world are now worth more than the specified amount.
This has never happened before. The previous record for the indicator was held since January 2018, when against the background of the altcoin season, capitalization increased to $ 852 billion. The current growing trend has already turned out to be stronger than that stage – while it is just beginning.
New cryptocurrency records
Let’s start with Ethereum. According to the CompaniesMarketCap platform, altcoin is ranked 90th in terms of capitalization among all assets in the world. ETH recently bypassed Philip Morris, the largest private tobacco company in the world.
At the moment, Ethereum is trading at $ 1209, over the past day, the coin has grown by 7.8 percent. After the recent growth, the capitalization of Ether has exceeded the $ 135 billion mark.
At the same time, according to the AssetDash platform, Ethereum is already in 70th place in terms of capitalization among global assets. True, this site does not track the capitalization of precious metals and some companies like Saudi Aramco, Decrypt reports.
Last year, the rapid rise in the price of ETH was driven by expectations about the upcoming transition of cryptocurrency to Proof-of-Stake, as well as the very rapid development of the decentralized finance (DeFi) industry. The latter continues to conquer new heights – according to the DeFi Pulse platform, the volume of funds blocked in DeFi protocols has exceeded the $ 21 billion mark.
Now let’s get back to Bitcoin. The day before, the main cryptocurrency again “won back” the primacy in the ranking of digital assets in terms of the daily volume of transferred funds, that is, the dollar equivalent of bitcoins that users sent to each other.
For most of the history of the market, more money has been transferred every day through the Bitcoin blockchain than through the Ethereum blockchain. But on September 2, 2020, ETH overtook BTC for the first time in this matter, with the daily volume of altcoin processed by the network rising to $ 6.5 billion. However, in the past few weeks, rising interest from large investors and a bullish trend have brought Bitcoin back to the top spot.
Johannes Schmitt, director of banking and payments at cryptocurrency exchange Kraken, explained that Bitcoin is a savings asset, so usually few of its holders move coins around frequently. However, at the same time, investors who are new to the world of cryptocurrencies often buy bitcoins before moving on to other assets. Therefore, the trend seems healthy and only once again underlines the growing popularity of cryptocurrencies.
We believe that what is happening in the cryptocurrency niche now should convince even the biggest skeptics of the blockchain industry of the bull run – that is, the growth stage. It is especially important that the active flight of the industry upward began quite recently, which means that there are still a lot of opportunities for investors.