(Reuters) – The total market value of all cryptocurrencies exceeded $ 1 trillion for the first time on Thursday as bitcoin reached a record high, according to data from crypto coin trackers CoinMarketCap and CoinGrocko.
Bitcoin has risen more than 900% to $ 38,655 on Thursday from $ 3,850 in March, as the government moves rapidly to blunt the economic impact of coronovirus. This has increased fears about rising inflation and US dollar debates.
Cryptocurrency is gaining traction with more mainstream investors who are increasingly convinced that bitcoin will be a long-lasting asset, not a speculative bubble as some analysts and investors fear.
Chainlink co-founder Sergei Najarov, a decentralized network that provides data to smart contracts on the blockchain, said that “there is a lack of trust in traditional institutions that is driving this huge rally towards cryptocurrency.”
“Although outsiders may see the cryptocurrency industry as an incredibly important milestone worth more than $ 1 trillion, in reality our place is still in one of its earliest stages of growth and development,” Nazarov said.
The market cap of all cryptocurrencies rose 10% to $ 1.042 trillion on Thursday, data from CoinMarketCap show. Bitcoin accounts for about 69% of the total market cap. It is followed by Ethereum with 13% share.
Reporting by Karen Brettel and Gertrude Chavez-Dreyfus; Editing by Jonathan Otis