The market capitalization of the cryptocurrency is $ 2 trillion for the first time

In 2021, bitcoin and ether saw major gatherings. In April 2021, the cryptocurrency market was worth more than $ 20 billion in value for the first time.

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GUANGZHOU, China – The value of the cryptocurrency market reached $ 2 trillion for the first time on Monday, driven by a march in ether, the second largest digital currency.

According to the price tracking website CoinGecko, the market capitalization of the cryptocurrency market has doubled in just over two months as retail and institutional investors enter the space.

Bitcoin, the largest digital currency, accounts for more than 50% of the total capital market capitalization. Bitcoin has risen just over 100% this year, and this has caused the cryptocurrency market to rise higher.

Last month, bitcoin reached a record high of more than $ 61,000. The digital currency traded at about $ 58,800 on Tuesday, according to Coindesk data.

Ether rally

But the latest boost in the cryptocurrency market has apparently been driven by ether, the digital currency that drives the Ethereum blockchain.

Bitcoin also runs on a technology called blockchain, which is a public ledger of activity and a way for transactions to take place using the crypto-currency. By comparison, the Ethereum blockchain is more like a software platform that enables developers to build applications on it. Users can then spend ether on these apps.

So-called smart contracts are an important feature of Ethereum. These are contracts that can be executed automatically using code.

There is growing excitement about the use of Ethereum in so-called decentralized finance, or DeFi, applications. These are blockchain-based financial services, such as loans, that could, in theory, bypass banks and brokers. Users of these programs can make transactions using cryptocurrency.

Ethereum also has the underlying technology behind the recent craze in non-fungible tokens, or NFTs – a new kind of digital asset.

Bitcoin interest

Bitcoin continues to be the driving force of the cryptocurrency market and has seen a huge increase in interest among companies and large institutional investors in recent months.

Tesla and Square are among a handful of companies that have bought bitcoin.

Meanwhile, major investment banks are exploring ways to enable clients to engage in digital assets. In March, CNBC reported that Morgan Stanley had become the first major U.S. bank to offer its wealth management clients access to bitcoin funds. CNBC also reported last month that Goldman Sachs is poised to launch its first investment vehicles for bitcoin and other digital assets to customers of its private wealth management group.

There is also hope among investors for a growing portfolio of investment products, and many are watching Grayscale Investments, which manages one of the largest listed bitcoin funds. This is known as the Grayscale Bitcoin Trust.

The company said Monday it is 100% committed to turning the trust into an exchange traded fund or ETF. This will effectively track the price of bitcoin and enable traders to play the price movement without owning the crypto-currency itself. It could be a way for more investors to get involved in the bitcoin market.

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