NEW YORK – The market capitalization of cryptocurrencies reached a record $ 2 trillion on Monday, according to data and market markers CoinGecko and Blockfolio, as gains over the past few months have attracted demand from both institutional and retail investors.
By mid-afternoon, the capital cryptocurrency was $ 2.02 trillion.
The surge was led by bitcoins, which reached their cornerstone, holding a market capitalization of $ 1
BITCOIN HIT $ 60,000 IN RECORD HIGH
Analysts say that as long as bitcoin remains above $ 53,000, it will be able to maintain its market capitalization of $ 1 trillion.
Ethereum, the second-largest cryptocurrency by market capitalization, rose 1.3 percent to $ 2,103. On Monday, its market capitalization was 244 billion dollars. It reached a record high of $ 2,144.99 last Friday.
“Momentum and interest have begun to expand beyond bitcoins and etherium,” said Paolo Ardoino, chief technology officer at the Bitfinex cryptocurrency exchange.
“As the industry continues to mature, we expect more blockchain-based applications to be introduced worldwide and, conversely, interest in other alternative assets … as they become more market-ready,” he added.
The blockchain data reporter Glassnode, in a research report, said the fact that bitcoin holds a market capitalization of $ 1 trillion in one week was “a strong vote of confidence in bitcoin and the cryptocurrency class as a whole.”
He added that the chain’s activities continue to strengthen Bitcoin’s stable position, with a volume equivalent to more than 10% of circulating supplies, concluding deals above the $ 1 trillion threshold.
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Also Monday, the Grayscale Bitcoin Trust, an investment instrument that holds $ 35 billion in bitcoin, said it continued to commit to converting into a stock exchange. In a blog post, Grayscale said the timing of its passage would depend on the regulatory environment.
Bitcoin has risen more than 100% this year, while ethereum has gained nearly 190%. Both are significantly better than traditional asset classes, boosted by the entry of major companies and large investors into the world of cryptocurrencies, including Tesla Inc and BNY Mellon.