The situation in the cryptocurrency market is currently as exciting as it has ever been. Bitcoin is charting new highs daily, altcoins are also starting to see some notable gains, resulting in massive growth for the entire market.
For the first time ever, the market did something that not a lot of people believed in back a few years ago – it reached a total capitalization of $1 trillion.The Four Comma Club
It took some time, but the cryptocurrency market capitalization has finally hit the coveted $1 trillion mark. It’s now a member of the four comma club, though we have to see if this will last.Cryptocurrency Market Cap. Source: CoinGecko
The move is substantial for the industry which grew astronomically in the past years. Compared to the beginning of 2020, the market cap is up a whopping 420%.
Having said this, the bulk of it comes from Bitcoin, which currently accounts for about 67% of the total market. This relative share of the cryptocurrency is also commonly referred to as the Bitcoin dominance index and has fluctuated largely throughout the years.
Second in line is Ethereum’s native cryptocurrency – Ether (ETH).
Over the years, many cryptocurrencies have come and gone from the top 10 but at the time of this writing, a definitive third is the popular stablecoin USDT (Tether). It’s the most commonly used stablecoin as traders use it to hedge their positions and also to denominate their trading portfolio. This is especially true in the derivatives market where high leverage exchanges allow trading against USDT.Plenty of Room to Grow
Bitcoin is the world’s largest cryptocurrency by means of market cap and the latest increase is largely due to the increase in its price.
The most common comparison for Bitcoin is that with gold. It’s been regarded by gold 2.0 by many and that’s somewhat expected. They share a lot of qualities, the most predominant one being their scarcity. There’s a limited amount of g...