- Bitcoin was recently trading at $58,820, up 1%. Since reaching a lifetime high of more than $61,000, the stock has fluctuated in a limited range.
NEW YORK (CBSNewYork) – According to data and market trackers CoinGecko and Blockfolio, the cryptocurrency market capitalization reached an all-time high of $2 trillion on Monday, after rises over the last several months drew interest from both institutional and retail investors.
The crypto market cap was $2.02 trillion at lunchtime.
The jump in crypto market capitalization was led by bitcoin, which set a new record by holding the $1 trillion market cap for a week.
Bitcoin was recently trading at $58,820, up 1%. Since reaching a lifetime high of more than $61,000, the stock has fluctuated in a limited range.
According to analysts, bitcoin will be able to retain its $1 trillion market valuation as long as it remains over $53,000.
Ethereum, the second most valuable cryptocurrency by market capitalization, was up 1.5 percent at $2,107, with a market capitalization of $244 billion. Last Friday, it reached a new high of $2,144.99.
“While two trillion dollars in market cap is a significant amount of value stored in the blockchain format, it represents less than 1% of the value that can be stored in that format, indicating that there is still a long way to go in terms of both market cap and overall smart contract adoption,” said Sergey Nazarov, co-founder of Chainlink, a decentralised network that provides data to smart contracts on the blockchain.
The fact that bitcoin has held the $1 trillion market cap for one week, according to blockchain analytics vendor Glassnode, is a “strong vote of confidence for bitcoin and the digital asset class as a whole.”
It also stated that on-chain activity continues to support bitcoin’s strong position, with a volume of over 10% of the circulating supply transacting beyond the $1 trillion mark.
This year, bitcoin has increased by more than 100 percent, while ethereum has increased by about 190 percent.
Both have outperformed traditional asset classes, aided by the introduction of mainstream corporations and significant investors, such as Tesla Inc and BNY Mellon, into the cryptocurrency realm.
