The crypto markets broke $2 trillion — a number not seen since May 2021.
The total market cap of the entire cryptocurrency industry has reclaimed the $2 trillion benchmark, the first time since mid-May.
According to data on CoinMarketCap, the combined value of cryptocurrencies crossed $2 trillion on Saturday for the first time in nearly three months. Although the market quickly fell below the benchmark, it rebounded on Sunday. And as of press time, the total market cap of the sector was approximately $2.01 trillion.
The recent rally suggests a renewed wave of optimism in the space led by Bitcoin, Ethereum and a slew of smaller cryptocurrencies.
Speaking of Bitcoin, the flagship crypto is currently trading at above $46,000 after hitting $48,000 on Saturday. Bitcoin accounts for more than 40 percent of the industry’s total market cap as it continues to assert its dominance.
Although Bitcoin is currently leading the rally, it is not the best gainer on a week-long basis. Decentralized computing platform Solana entered the top ten list after recording a weekly gain of over 65%. Ripple’s XRP follows closely with a 50% gain in the past seven days, and Cardano’s ADA has gained over 44% in the past week.
Meanwhile, Ethereum and Binance Coin, the second- and third-largest cryptocurrencies, respectively, are also sitting on significant gains, having soared more than 20% apiece and reclaiming months-long highs.
As a backstory, the combined value of the crypto sector rose to about $2.5 trillion in May — but a tweet from Tesla’s Elon Musk seemed to cut the bull run short after he announced that his company would no longer accept Bitcoin as payment.
The “Crypto Fear and Greed Index” moved into an “extreme fear” zone in June, signaling growing uncertainty amid China’s clampdown on crypto operations. However, in early August, Ethereum’s highly anticipated London upgrade in combination with other factors boosted the market, a trend that has been sustained to this week.
Furthermore, while many experts predicted that the controversial infrastructure bill would have a negative effect on the industry, Bitcoin was surprisingly resilient.
NYDIG Global Head of Research Greg Cipolaro in a Saturday note wrote:
“We interpreted this price action as extremely bullish [...] we think the recognition of the crypto industry by lawmakers was ultimately a legitimizing event, one that should give investors comfort that this industry is here to stay.”
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