Global Crypto Market

Global Crypto Market Value Hits Record $1 Trillion

The market capitalization of all cryptocurrencies around the world has reached $1 trillion for the first time ever. According to data from CoinGecko, the global market value of all cryptocurrencies is at $1.016 billion at the time of writing. 

This is the first time the global market value has surpassed the $1 trillion mark. The last milestone was in January 2018 when it reached nearly $800 billion level. 

The largest cryptocurrency Bitcoin (BTC) remains dominant in the market with a $685 billion market cap (67%), followed by Ether (ETH) with a $136 billion (13%). Additionally, Tether (USDT), XRP, and Litecoin (LTC) round out the top five. 

Tracking 419 exchanges and 6,126 coins in total, CoinGecko’s data shows that the $1 trillion crypto market recorded $191 billion in transaction volume over the last 24 hours. 

It is trailing behind the global silver market cap ($1.48 trillion), and remains relatively small compared to the total market capitalization of gold, as well as leading stock exchanges like New York stock exchange, NASDAQ, and Hong Kong exchange, among others. 

From below $200 billion in market cap less than a year ago, the $1 trillion crypto market valuation is achieved with the meteoric surge of major cryptocurrencies like Bitcoin and Ether in 2020.

The milestone also indicates that cryptocurrencies are becoming an institutional-grade venture. In 2020, some of the largest investments in crypto space have come from traditional financial institutions like PayPal, Square, MassMutual, One River, Ruffer Investment, and tech firms like MicroStrategy.

“The $1 trillion mark cements cryptocurrency as a investable asset class that no longer sits on the fringes of traditional finance as a toy for retail investors,” said Jack Purdy, decentralized finance analyst at Messari. “It demonstrates that this asset class is large enough to absorb large orders like we’ve seen recently with the slew of institutions entering over the last few months.”

Bitcoin’s Market Cap Could Hit $1 Trillion

Institutional and retail investors show growing interest in the most well-known cryptocurrency, Bitcoin, which has gained 25% in January 2021, following its more than 300% gain in 2020.

According to 8marketcap, Bitcoin overtook Alibaba and Taiwan Semiconductor Company to be the tenth-largest asset in the world. With Bitocin’s recent rally, it is quickly catching up to global giants Tencent and Tesla.

Bitcoin’s market cap could hit $1 trillion as early as 2021, according to Garrick Hileman’s head of research. 

Major institutional players like Stanley Druckenmiller, BlackRock, Bill Miller, and Jack Dorsey have acknowledged that Bitcoin is becoming a reserve asset and validating the “digital gold” thesis. Going forward, Hileman expects to see more buy-in from retail and Wall Street investors, who are still on the sidelines. 

“Bitcoin has gotten to a place where institutional investors, banks, and family offices are legitimately pondering involvement as a defense against currency devaluation,” Alex Mashinsky, the chief executive of crypto lending platform Celsius Network.