Crypto Market Is On Fire Right Now - Market Cap Nears $25 Bln
While people have been observing coins like Ether and Dash reach all-time highs, the crypto ecosystem as a whole seems to be taking off.
While people have been observing coins like Ethereum and Dash reach all-time highs, the crypto ecosystem as a whole seems to be taking off. The market capitalization of all cryptocurrencies in circulation has neared $25 bln.
Bitcoin – the dominant one
Bitcoin is, of course, the dominant cryptocurrency. It currently accounts for approximately 80 percent of the total market capitalization of all cryptocurrencies in circulation. In the run-up to the decision on the Winklevoss’ Exchange Traded Fund (ETF), Bitcoin dominance was as high as 88 percent.
Post rejection of the ETF, Bitcoin price has stabilized, and it has been in a consolidation mode.
Secondary coins take off too
Crypto investors, who were betting on ETF approval, now seem to prefer secondary coins like Ethereum and Dash. Both these coins have reported massive gains in the last three months and seem to be further increasing post the rejection of the ETF.
Ether’s market capitalization has shot up from $1 bln a month ago to over $2.5 bln currently.
Dash has recorded impressive gains too, with current market capitalization of $500 mln which is up from $120 mln a month ago.
Altcoins which have enhanced privacy features (like Monero and Zcash) are other coins which seem to be leading this bull run.
Bubble territory? Not even close!
Does a total market capitalization of $25 bln mean that cryptocurrencies are in bubble territory?
The market capitalization is a pittance when compared to other asset classes. The market capitalization of US stock markets is approximately $25 tln, or a thousand times the value of all cryptocurrencies in circulation. The value of all gold in circulation is approximately $7 tln.
The total market capitalization of all cryptocurrencies is roughly equal to the market capitalization of Snapchat and less than one eighth the market capitalization of Visa Inc.
Given the huge potential of cryptocurrencies in areas ranging from money transfers to smart contracts, cryptocurrencies are definitely not overvalued. If adoption increases further, their value could skyrocket.