Cryptocurrency is nearing a 1 Trillion Dollar MarketCap for the first time in history. As of January 5, 2021 the total cryptocurrency MarketCap has reached approximately $924 Billion Dollars. Due to the popularity of blockchain technology and the rise of cryptocurrencies investors are paying special attention to the cryptocurrency market-caps.
The Crypto MarketCap & Bitcoin
The digital asset Bitcoin ranks among the top ten of world currencies with a current price above $30,000 USD and holding a 68% market dominance. With a market cap of $638 billion, the total value of Bitcoin is close to the share values of Tesla and Alibaba. Recently, JP Morgan produced a report suggesting that if Bitcoin were to strike six-figure territory that ‘this is probably good news”. Bitcoin is not the only cryptocurrency making strides and increasing its market cap, Ethereum is now the 82nd-most-valuable asset.
The Crypto MarketCap & Ethereum
Currently, Ethereum has an increasing market capitalization upwards of $125 billion. There is more good news for ETH, the asset is up 50% in the last week and has the attention of financial institutions such as Grayscale, Morgan Stanley and many others. Another thing that helped increase Ethereum’s market cap was the upgrade from the existing Ethereum network to the Ethereum 2.0 blockchain. This upgrade was highly anticipated as it promises to reduce ETH network congestion and lower fees.
The Altcoin MarketCap
Then there’s the cryptocurrency Altcoins with market caps headed north making an impact in the cryptocurrency markets. Polkadot (DOT) $8.715 B, Cardano (ADA) $8.451 B, Tether (USDT) $22.153 B, Bitcoin Cash (BCH) $7.738 B, Ripple (XRP) $10.395 B. This market cap is growing and causing many financial institutions and investors to take notice.
The Importance of the MarketCap in investing;
Within the blockchain industry, market capitalization refers to a metric that measures the relative size of a cryptocurrency. It is calculated by multiplying the current market price of a particular coin or token with the total number of coins in circulation. For investors, the market cap is used as an indicator of the financial health of a cryptocurrency project and whether or not to invest.
