In recent years, the global crypto market has shown significant changes in terms of growth and revenue. Several new cryptocurrencies have emerged in the crypto market, which has changed market conditions followed by investor preferences. Investors who believe in the future possibilities of cryptocurrency have driven most of the current market capitalization, and perhaps it will remain this way until there is a certain measure of price stability and enhanced acceptance from more traders.
Apart from the actual price of the cryptocurrency those who invest in it also consider the inherent value of the crypto, which includes the popularity of the technology and the efficiency of the integrated network. Blockchain public ledger technology has the potential to transform the traditional payments systems and introduce new applications of virtual transactions along with enhanced security.
In 2020, the pandemic affected every aspect of a country’s economic and financial status. The past year has also been a significant one for cryptocurrencies and blockchain. In the face of such extreme economic meltdowns, cryptocurrencies have proved to be remarkably resilient. This proves that the crypto market has dominant potentials for strong comebacks.
Recently, the total market capitalization of cryptocurrencies crossed the US$2.5 trillion mark last Saturday and marginally declined to US$2.47 trillion. The reason behind the boost in investors’ confidence as they continue to bet on digital currencies is the expectations that the first bitcoin traded fund will soon begin trading in the week ahead. According to coinmarketcap, currently, the total market cap is standing at US$2.49 trillion, with a global market volume of US$92.38 billion in 24 hours, which makes a 9.23% increase.
Bitcoin’s performance has been excellent over the past few days. It has become a highly valued asset since 2020. BTC has contributed greatly to the rise in the value of the crypto market. One of the biggest beneficiaries of the crypto’s bull run is its biggest public holder MicroStrategy. The company held 114,041 bitcoin tokens that had an aggregate value of US$3.16 billion that doubled approximately to US$7 billion, according to reports.
How are Bitcoin and other cryptocurrencies contributing to the rising global crypto market cap?
Bitcoin, the largest digital currency in the world, accounts for 45% of the global crypto market. Ether, being the second-largest has risen over 1000% since last year. Similarly, many other cryptocurrencies have risen in terms of value over the past year. But what is causing this increase in revenue?
Recently, these digital currencies are being considered as a haven against market volatility and inflation. There has an ongoing trend where public companies are converting their cash treasuries into cryptocurrency. The current societal and economic landscape is introducing a new situation for people to hold less cash and stay away from market swings. Even if the general public is unwilling to use it for transactions, many want to convert their cash into crypto because they believe that its deflationary nature makes it a better store for value and protect their financial gains against market inflation.
Apart from these reasons, several talented tech developers have devoted their efforts to cryptocurrency mining that has increased the depth, breadth, and market focus needed to take the industry to the next level.
Experts believe that it would be naive to think that the cryptocurrency market will not face another threat or crisis. Certainly, it will face many. But the market has proven its resilience so that we can say that the it is capable to weather any storm and facilitate a financial revolution in the future.
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