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NEW YORK – Cryptocurrency market capitalization reached a historic peak of $ 2 trillion on Monday, according to data and market trackers CoinGecko and Blockfolio, as gains in recent months have attracted demand from institutional and retail investors .
By mid-afternoon, the crypto market capitalization was $ 2.02 trillion.
The increase was led by bitcoin, which reached its own milestone by maintaining a $ 1 trillion market capitalization for a week. Bitcoin was up 1.4% last to $ 59,045. Since reaching a lifetime peak of more than $ 61,000 in mid-March, bitcoin has been trading in a relatively narrow range.
BITCOIN REACHES $ 60,000 IN THE SAME RECORD
Analysts said that as long as bitcoin remains above $ 53,000, it will be able to maintain its market value of $ 1 trillion.
Ethereum, the second largest cryptocurrency in terms of market capitalization, rose 1.3% to $ 2,103. Its market capitalization was $ 244 billion on Monday. It reached a record high of $ 2,144.99 last Friday.
“The momentum and interest started to expand beyond bitcoin and ethereum,” said Paolo Ardoino, chief technology officer at crypto exchange Bitfinex.
“As the industry continues to mature, we expect more blockchain-based applications to be introduced into the world and, coinciding with that, a surge of interest around other alternative assets … as they become more ready for the market” , he added.
Blockchain data provider Glassnode, in a research report, said that the fact that bitcoin has maintained its market value of $ 1 trillion for a week is a “strong vote of confidence for bitcoin and the asset class of cryptocurrency as a whole “.
He added that on-chain activity continues to reinforce bitcoin’s robust position, with a volume equivalent to more than 10% of the circulating supply transacting above the $ 1 trillion limit.
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Also on Monday, the Grayscale Bitcoin Trust, a $ 35 billion investment vehicle that holds bitcoin, said it remains committed to converting to an exchange-traded fund. In a blog post, Grayscale said the timing of his transition would depend on the regulatory environment.
Bitcoin is up more than 100% this year, while ethereum has gained almost 190%. Both massively outperformed traditional asset classes, driven by the entry of large companies and large investors into the cryptocurrency world, including Tesla Inc and BNY Mellon.