Global cryptocurrency market crosses $3 trillion milestone as Bitcoin, other digital currencies jump

The mcap had first hit the $2 trillion mark on April 6 this year before it declined by thousands of dollars to around $1.2 trillion. (Image: Pexels.com)

Nearly six weeks after the total market value of all cryptocurrencies in the world combined stood at $2 trillion, the market cap has now added another trillion dollars. The total mcap of the crypto market on Monday breached the $3 trillion mark and scaled to $3.09 on Tuesday morning, data from CoinGecko showed. The mcap had first hit the $2 trillion mark on April 6 this year before it declined by thousands of dollars to around $1.2 trillion. It had again jumped back to $2 trillion in mid-August. Going through multiple corrections, the crypto world in September also slipped twice below the $2 trillion level. However, from October 1 onwards, the mcap has been rallying with the growth in crypto prices including Bitcoin, Ethereum, Binance Coin, Solana, along with growing interest in meme coins such as Dogecoin, Shiba Inu, and others. 

Apart from the coin rally, the growth in total mcap also has the US SEC’s recent approval to the first Bitcoin Futures ETF as one of the factors. Moreover, the growing use cases of non-fungible tokens and decentralised finance as well have caught users’ attention. The mainstream adoption of crypto has also risen in the recent past as investors have continued to back digital currencies. As per CoinShares, the digital asset investment products saw inflows worth $174 million last week, marking the 12th consecutive week of inflows. This brought the year-to-date inflows into digital assets to $8.9 billion, much higher than $6.7 billion in 2020.

Also read: Bitcoin value now more than double the combined mcap of JPMorgan Chase and Visa

“Futures ETF approval by the US SEC certainly gave the market a positive sentiment that was long overdue but it was not the primary factor of this rally in market cap. If you look at the price movement of bitcoin, while it is not so precise that you could make a prediction but it remains steady at a particular level. Then it just shoots up on not-so-great volume before falling down and then again slowly creeping up to that level and remaining flat. This is a very common characteristic of bitcoin and is more supported by new participants coming into the market. So little more new money comes in, it has an upper pressure in the market much like if little money goes out of the market, it causes a fall in the prices,” Ajeet Khurana, Crypto expert and Founder, Genezis Network told Financial Express Online. 

In the past seven days leading cryptos including Bitcoin recorded 11.6 per cent growth in prices while Ethereum jumped 11.2 per cent. Others like Binance Coin, Solana, Cardano, XRP, Polkadot, and Dogecoin increased by 17.6 per cent, 21.4 per cent, 17.2 per cent, 15.7 per cent, 5.7 per cent, and 3.6 per cent respectively, showed CoinGecko data at the time of filing this report. Shiba Inu, which had registered nearly 160 per cent growth in the last week of October to become the eighth biggest crypto in the world saw negative 20 per cent growth in the past seven days.

The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator. Financial Express Online does not bear any responsibility for their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.

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