Cryptocurrency Market Capitalization Surpassed $2 Trillion
Cryptocurrencies reached an important milestone on Monday, as the value of the cryptocurrency market exceeded $2 trillion for the first time in history driven by a rally in ether. It is the second-largest cryptocurrency in the world. The cryptocurrency market reached a phenomenal result, as in just two months its market capitalization doubled. Unsurprisingly, the biggest cryptocurrency in the world accounts for more than 50% of the entire cryptocurrency market capitalization. Bitcoin rallied more than 100% this year alone and that factor helped drive the market higher.
In March, Bitcoin searched a record high of above $61,000. It was trading at about $58,800 on Tuesday. Apart from Bitcoin, ether also played an important role. The latest boost in the cryptocurrency market appears to have been due to the world’s second-largest cryptocurrency, the digital coin that powers the Ethereum blockchain.
As in the case of ether, bitcoin also runs on a technology called blockchain which is a public ledger of activity. Thanks to the blockchain it is also possible to make transactions. Interestingly, the Ethereum blockchain is more like a software program. This program allows developers to build apps on top of it. Users have the opportunity to spend ether on these apps.
It is possible to use Ethereum in so-called decentralized finance, or DeFi, applications. We are talking about blockchain-based financial services such as lending, which could in theory bypass banks and brokerages. Users of such apps may transact using cryptocurrency.
The price of ether reached an all-time high of $2,151.25 on Tuesday morning Singapore time. Ether is up more than 180% year-to-date.
Cryptocurrency and institutional investors
Bitcoin is famous all over the world and also it remains the powerhouse of the cryptocurrency market. Moreover, over the last few months, it experienced a big increase in interest among companies and large institutional investors. For instance, Tesla and Square are among a handful of companies that purchased bitcoin.
At the same time, major investment banks are exploring ways to allow clients to get involved with digital asset investments. It is hard not to agree with them after taking into account the latest results. Last month, Morgan Stanley, offered its wealth management clients access to bitcoin funds. It became the first major U.S. bank to offer such a service. Based on the preliminary information, Goldman Sachs is gearing up to launch its first investment vehicles for bitcoin and other digital assets to clients of its private wealth management group.
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