The crypto market did it and reached $ 1 trillion, due to Bitcoin's rise to new record highs, reaching $ 40,000, and the rise of alternative digital currencies, led by Ethereum, which rose above $ 1150.
The crypto market did something that not many people believed a few years ago, reaching a total capital of $ 1 trillion.
Trillion Dollar Club:
It took some time, but the cryptocurrency market value had finally reached the required trillion dollar mark.
The crypto market has officially become trillion dollar club members.
The question now is: Will the crypto market continue to achieve higher gains, such as reaching $ 10 trillion and surpassing gold after that, and how much should the price of Bitcoin and alternative digital currencies be, and how long will it take?
But let us return to the current moment, which is a historic moment in the crypto market and for its believers, as this young industry, which has passed a decade ago, has only managed to reach $ 1 trillion.
For your information, the total market value has grown by 420% from the beginning of 2020 until the moment.
The bulk of the total market capitalization of the crypto market represents Bitcoin, which is currently 69%. This relative share of Bitcoin is referred to as the Bitcoin Dominance Index and has fluctuated greatly over the years.
Ethereum is present in the bullish race:
Over the years, many cryptocurrencies have emerged and rose to the top ten in terms of total market capitalization.
At the time of writing this article, the stable digital currency “USDT” ranks third in terms of total market cap and is the most used by traders who use it to hedge cryptocurrency fluctuations.
While the digital currency Ethereum ranks second and has not moved from it, it rarely draws attention to the extent of its adhesion to Bitcoin.
Plenty of room to grow:
Bitcoin is the largest digital currency in the world by total market capitalization, and the recent increase in total market capitalization is due to the rise in the bitcoin price.
Trackers almost always compare Bitcoin to gold, and Bitcoin is often described as Gold 2.0, or digital gold.
Bitcoin and gold share many advantages, such as scarcity, limited supply ...
This is why people refer to gold as a store of value, it is not inflated because we cannot get more of it (unlike paper currency, which is not backed by gold).
The same is true of Bitcoin and the narrative that it is a store of value and growing tremendously, especially in the past year.
After the outbreak of the global pandemic, governments around the world began printing money to keep their economies afloat, a process that ultimately reduces the value of money in a process known as inflation.
This is where the similarities end, and Bitcoin begins to shine.
Perhaps this is the reason why investors, institutions and companies listed on the Nasdaq exchange have resorted to Bitcoin to escape inflation.
When you compare gold to Bitcoin in terms of total market value, we find that there are about 190,000 tons of gold that have already been mined.
There is no exact estimate of how much remains and it is a moving target, but some forecasts place it around 20% higher than that number.
It is also worth noting that this gold can be extracted from an economic point of view.
Given the current price of an ounce, this puts the total market value of gold at around $ 13.5 trillion, or roughly 1460% larger than Bitcoin.
In other words, there is still a lot left for Bitcoin to equal gold in terms of total market capitalization.