Cryptocurrency market value reaches $ 2 trillion for the first time

GUANGZHOU, China – The value of the cryptocurrency market reached $ 2 trillion for the first time on Monday, driven by a rise in ether, the second largest digital currency.

In just over two months, the market capitalization of the cryptocurrency market has doubled, according to the price tracking website CoinGecko, as institutional and retail investors pile up on the market.

Bitcoin, the largest digital currency, accounts for more than 50% of all cryptocurrency market capitalization. Bitcoin has risen more than 100% this year alone, and this has helped boost the cryptocurrency market.

Last month, bitcoin reached a record of more than $ 61,000. The digital currency was trading at around $ 58,800 on Tuesday, according to data from Coindesk.

But the latest boost in the cryptocurrency market seems to have been driven by ether, the digital currency that powers the Ethereum blockchain.

Bitcoin also runs on a technology called blockchain, which is a public record of activities and a way for transactions to take place using cryptocurrency. In comparison, the Ethereum blockchain is more like a software platform that allows developers to build applications on it. Users can then spend ether on these applications.

So-called smart contracts are a key feature of Ethereum. These are contracts that can be executed automatically by means of a code.

There is growing enthusiasm about the use of Ethereum in so-called decentralized finance applications, or DeFi. These are blockchain-based financial services, such as loans, that could, in theory, bypass banks and brokers. Users of these applications can make transactions using cryptocurrency.

Ethereum also has the underlying technology behind the recent craze for non-fungible tokens, or NFTs – a new type of digital asset.

Bitcoin still remains the driving force in the cryptocurrency market and, in recent months, has seen a huge increase in the interest of companies and large institutional investors.

Tesla and Square are among a handful of companies that have bought bitcoin.

Meanwhile, major investment banks are exploring ways to allow clients to engage with investments in digital assets. In March, CNBC reported that Morgan Stanley became the first major U.S. bank to offer its wealth management clients access to bitcoin funds. CNBC also reported last month that Goldman Sachs is preparing to launch its first investment vehicles for bitcoin and other digital assets to clients of its private wealth management group.

There is also hope among investors for an expanding portfolio of investment products and many are watching Grayscale Investments, which manages one of the largest publicly traded bitcoin funds. It is known as Grayscale Bitcoin Trust.

The company said on Monday that it is “100% committed” to converting that fund into an exchange-traded fund, or ETF. This would effectively track the price of bitcoin and allow traders to play the price movement without owning the cryptocurrency. It could be a way for more investors to get involved in the bitcoin market.