NEW YORK- The cryptocurrency market capitalization hit an all-time high on Monday, according to data and market trackers CoinGecko and Blockfolio, as gains over the last several months attracted demand from both institutional investors and retail investors.
At midday the market cap was at$ 2.02 trillion, the surge in crypto market cap led by bitcoin, which hit its own milestone by holding the$ 1 trillion market cap for one week.
Bitcoin was last up at$ 58,820 after hitting a lifetime peak of more than$ 61,000, but has traded in a relatively narrow range since. Analysts said that as long as Bitcoin stays above$ 53,000, it will be able to maintain its$ 1 trillion market cap. Ethereum, the second largest cryptocurrency in terms of market cap, was up 1.5% at$ 2,107 with a market cap of$ 244 billion.
It reached a record high of$ 2,144.
99 last Friday; while two trillion dollars in market cap is a sizable amount of value that can be stored in the blockchain format, it is still less than 1% of the value that can be stored in that format, which means there is still much further to go in terms of both market cap and overall smart contract adoption, said Sergey Nazarov, co-founder of Chainlink, a decentralized network that provides data to smart contracts on the blockchain. In a research report, the Blockchain Data Provider Glassnode said that the fact that bitcoin has held the$ 1 trillion market cap for one week is a strong vote of confidence for Bitcoin and the cryptocurrency asset class as a whole.
It added that on-chain activity continues to reinforce Bitcoin's robust position, with a volume exceeding 10% of the circulating supply circulating above the$ 1 trillion threshold.
Ethereum has risen more than 100% this year, while Bitcoin has gained nearly 190%.
Both are massively overshadowing traditional asset classes, bolstered by the entry of big companies and traditional investors into the cryptocurrency world, including Tesla Inc and BNY Mellon.