Overall Market Capitalization of Cryptocurrencies at All-Time High of $820.6 Billion, Scales Back
The overall global value of the cryptocurrency space has reached an all-time high of $820.6 billion.
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The overall value of the global cryptocurrency market hit an all-time high of $820.6 billion on Monday, up $9.6 billion from the $812 billion recorded the previous day, data from CoinMarketCap showed. From January 1, the cryptocurrency space has expanded by 27 percent or nearly $2220.07 billion from the recorded $ 598.53 that day.
But in just a few hours, cryptocurrencies slumped again, decreasing the market cap by nearly 100 billion, to around 720 billion, in another test of resilience.
The overall value of the global cryptocurrency market hit an all-time high of $820.6 billion on Monday, up $9.6 billion from the $812 billion recorded the previous day, data from CoinMarketCap showed. From January 1, the cryptocurrency space has expanded by 27 percent or nearly $2220.07 billion from the recorded $ 598.53 that day.
But in just a few hours, cryptocurrencies slumped again, decreasing the market cap by nearly 100 billion, to around 720 billion, in another test of resilience.
The cryptocurrency market has rebounded and more than doubled in value after it hit its low of $418 billion on December 22. The market is growing exponentially as the prices of non-Bitcoin cryptocurrencies surged, and more projects are expected to be launched this year.
Bitcoin remains the top money-maker and the undisputed leader of the cryptocurrency space. BTC traded at $16,191 on Monday after peaking at nearly $19,500 last December 16. However, with its market capitalization of almost $272 billion, Bitcoin still has a 33.1 percent dominance of the digital currency space, down from 50 percent in December.
Rise of Altcoins Pushing Cryptocurrency Growth
The downward slide of Bitcoin also saw the rise of other altcoins. One of the promising cryptocurrencies is Ripple’s XRP which surged 42.95 percent over the past seven days and is now the second largest cryptocurrency by market capitalization, with a market value of over $126 billion. Ripple XRP traded at $3.25 on Monday.
Ethereum breached the $1,000 milestone in late December, making it the third largest cryptocurrency by market cap, with a market value of over $118 billion. The digital currency traded at an all-time high $1,218.
What is Market Capitalization?
The market cap of cryptocurrencies may create confusion. This number is not actual money making the rounds, as trading volumes are still much lower compared to stock and commodity exchanges. The actual inflows of money in cryptocurrencies is also lower. In the case of some up and coming assets, an inflated market cap may have a very tight bottleneck when it comes to actually selling the digital asset for a high price.
So market capitalization remains just a statistic, and not actual economic value which has moved into cryptocurrency. With only a fraction of the assets being traded, valuations may change in case of more active selling.
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