Economy

Cryptocurrency market cap exceeded $ 2 trillion for the first time

Cryptocurrency market cap exceeded $ 2 trillion for the first time

In 2021, Bitcoin and Ether saw huge increases. In April 2021, the cryptocurrency market value exceeded $ 2 trillion for the first time.

Yap Aryan | Norphoto | Getty Images

GUANGZHOU, CHINA – Cryptocurrency market value topped $ 2 trillion for the first time on Monday driven by a surge in the ether, The second largest digital currency.

In just over two months, the cryptocurrency market’s market cap has doubled, according to price-tracking site CoinGecko, as retail and institutional investors are heaping up in space.

BitcoinCryptocurrency, the largest digital currency, accounts for more than 50% of the total cryptocurrency market value. Bitcoin has risen more than 100% this year alone, and this has helped push the cryptocurrency market higher.

Last month, Bitcoin hit a record high of $ 61,000. The digital coin traded at around $ 58,800 on Tuesday, according to Coindesk data.

Ether pool

But the recent boost in the cryptocurrency market appears to have been driven by Ether, the digital currency that powers the Ethereum blockchain.

Bitcoin is also working on a technology called blockchain It is a general ledger of activity and a method for making transactions using cryptocurrency. In comparison, the Ethereum blockchain is a lot like a software platform that allows developers to create applications on top of it. Users can then spend Ether on these apps.

What’s called Smart contracts are a key feature of Ethereum. These are contracts that can be executed automatically with code.

There is a growing excitement about the use of Ethereum in so-called decentralized finance, or DeFi, apps. These are blockchain-based financial services, like lending, that in theory could bypass banking and brokerage. Users of these applications can use the cryptocurrency.

Ethereum also has the technology behind the recent insanity Non-exchangeable tokens, or NFTs – a new type of digital asset.

Interest on Bitcoin

Bitcoin continues to be the source of strength in the cryptocurrency market and over the past few months, it has seen a significant increase in interest among companies and Major institutional investors.

Tesla And Square Among a bunch of Companies that have bought Bitcoin.

Meanwhile, major investment banks are exploring ways to allow clients to participate in digital asset investments. in March , CNBC reported Which – which Morgan Stanley It became the first major US bank to offer its wealth management clients access to bitcoin money. CNBC also reported last month that Goldman Sachs It gears up to launch its first bitcoin investment tool and other digital assets for its wealth management group clients.

There is also hope among investors to expand their portfolio of investment products and many of them are viewing Grayscale Investments, which operates one of the largest publicly traded bitcoin funds. It is known as Bitcoin gray scale box.

On Monday, the company said it was “100% committed” to converting that trust into an exchange-traded fund, or ETF. This would effectively track the bitcoin price and allow traders to play price action without owning the cryptocurrency itself. It could be a way for more investors to participate in the bitcoin market.

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