In 2021, bitcoin and ether saw a massive rally. In April 2021, the cryptocurrency market reached $ 2 trillion for the first time.
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GUANGZHOU, China – The cryptocurrency market cap reached $ 2 trillion for the first time on Monday, fueled by the rise of the ether, the digital coin at its peak. Second
In just two months, the cryptocurrency market cap has more than doubled, according to price tracking website CoinGecko, as both retail and institutional investors move into the space.
Bitcoin, the largest digital currency, accounts for more than 50% of the total cryptocurrency market capitalization.Bitcoin has surged more than 100% this year alone, and that has driven the cryptocurrency market higher.
Last month, bitcoin hit a record above $ 61,000.The digital coin was trading at around $ 58,800 on Tuesday, according to Coindesk data.
But the recent increase in the market cryptocurrency It appears to be fueled by Ether, the digital coin driving the Ethereum blockchain.
Bitcoin also runs on a technology known as the blockchain, which is a ledger of activities and a method of making transactions using cryptocurrency. In comparison, the Ethereum blockchain is like a software platform that allows developers to build apps. The user can then use the ether with these apps.
The so-called smart contract is the main feature of Ethereum. This is a contract that can be automatically executed using code.
There is more excitement about using Ethereum in decentralized financial applications, or DeFi.These are blockchain-based financial services such as lending, which can theoretically cross banks and brokers. Users of these apps may transact using cryptocurrency.
Ethereum also has the underlying technology behind the latest craze in the non-convertible token, or NFT, a new type of digital asset.
Billionaire investor Mark Cuban owns ether and says it’s the currency that “The closest we have to the real currency”
Ether hit an all-time high of $ 2,151.25 on Tuesday morning Singapore time, according to CoinDesk, up more than 180 percent over the previous year.
The cryptocurrency has also garnered some attention from companies.Chinese app maker Meitu bought ether for $ 22.1 million last month, making it one of the first big companies to do so.
Bitcoin is still the power of the market. cryptocurrency And in recent months it has seen a significant increase in interest among large corporations and institutional investors.
Tesla and Square are among the few companies to buy bitcoin.
At the same time, large investment banks are exploring ways to allow clients to get involved with investing in digital assets. In March, CNBC reported that Morgan Stanley became the first major U.S. bank to offer wealth management clients access to bitcoin funds.CNBC reported last month that Goldman Sachs was preparing to launch its first investment vehicle. For bitcoin and other digital assets to clients of private wealth management groups.
There is also hope among investors for an expanding investment product, and many are watching Grayscale Investments, which operates one of the largest publicly traded bitcoin funds. It’s known as the Grayscale Bitcoin Trust.
The company said on Monday that It is “100% committed” to convert that trust into an exchange traded fund or ETF that effectively tracks the bitcoin’s price and allows traders to play price movements without owning the cryptocurrency itself. It could be a way for more investors to participate in the bitcoin market.