NEW YORK – Cryptocurrency market capitalization hit an all-time high of $ 2 trillion on Monday, according to data and market trackers CoinGecko and Blockfolio, as gains in recent months drew demand from institutional and retail investors.
As of mid-afternoon, the crypto market capitalization was $ 2.02 trillion.
The rise was led by bitcoin, which reached its own milestone by staying at a $ 1 trillion market capitalization for a week. Bitcoin was last up 1.4% at $ 59,045. Since reaching a peak of over $ 61,000 in mid-March, bitcoin has traded in a relatively tight range.
BITCOIN REACHES $ 60,000 IN HIGH RECORD
Analysts said that as long as bitcoin stays above $ 53,000, it will be able to maintain its $ 1 trillion market capitalization.
Ethereum, the second largest cryptocurrency in terms of market capitalization, was up 1.3% to $ 2,103. Its market capitalization was $ 244 billion on Monday. Last Friday it hit a record $ 2,144.99.
“Momentum and interest have started to expand beyond bitcoin and ethereum,” said Paolo Ardoino, chief technology officer at crypto exchange Bitfinex.
“As the industry continues to mature, we expect more blockchain-based applications to be introduced to the world and, coinciding with that, increased interest around other alternative assets … as they become more market-ready.” added.
Blockchain data provider Glassnode, in a research report, said that the fact that bitcoin has held the market capitalization of $ 1 trillion for a week is a “strong vote of confidence for bitcoin and the cryptocurrency asset class. as a whole”.
He added that on-chain activity continues to bolster bitcoin’s strong position, with a volume equivalent to more than 10% of circulating supply being realized above the $ 1 trillion threshold.
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Also on Monday, the Grayscale Bitcoin Trust, a $ 35 billion publicly traded investment vehicle that owns bitcoins, said it remains committed to converting to an exchange-traded fund. In a blog post, Grayscale said the timing of their transition would depend on the regulatory environment.
Bitcoin is up over 100% this year, while Ethereum has gained nearly 190%. Both have vastly outperformed traditional asset classes, bolstered by the entry of major companies and large investors into the crypto world, including Tesla Inc and BNY Mellon.