Cryptocurrency Industry Nears a $1 Trillion in Value Thanks to Bitcoin and Ethereum

The crypto market can no longer be disregarded by the financial sector, as it has made notable strides. Leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) have brought the crypto space into the spotlight as more investors, pundits, and traders continue jumping on the bandwagon and converting to digital assets as a hedge.

New data reveals that the crypto market’s total value is edging closer to the $1 trillion mark. A market insights provider noted:  

“Total crypto market cap nearing $1 trillion for the first time.”

The cryptocurrency market is a force to be reckoned with, as it clinched $130 billion in a span of 24 hours to hit a market capitalization of $980 billion. This sector has enjoyed a rollercoaster ride, with Bitcoin (BTC) leading the surge after its price hit an all-time high of more than $36,000 on Jan.6. Since then, it has retracted to $34,643 as of press time. Its market capitalization currently stands at $670 billion.

BTC has started 2021 on a high by reaching levels unseen in its twelve-year life span. The trigger towards the $30,000 range was pulled in mid-December after it smashed a record-high of $20,000 set in December 2017. 

The driving force behind BTC’s bull run is a notable spending spree by institutional investors like MicroStrategy, Square, and GrayScale. Nevertheless, leading American bank JPMorgan Chase & Co. has stipulated that this uptrend might just be the beginning of Bitcoin's budding potential if the leading cryptocurrency continues to steal market share and public support from gold, the traditional safe-haven asset, in the long-term.

Ethereum leads altcoins in bullish rally

Ethereum (ETH) has also been pivotal in bringing the crypto space closer to a $1 trillion market capitalization. Thanks to a booming DeFi sector and the launch of Ethereum 2.0, the second cryptocurrency recently smashed the $1,000 mark. It is currently trading at $1,104 with a market capitalization of $130 billion, according to CoinMarketCap. This is the closest ETH has gotten to its record-breaking price of $1,400. 

Other cryptocurrencies like Cardano (ADA), Polkadot (DOT), and Litecoin (LTC) have also gained considerably in value in the last few days, with LTC replacing Ripple (XRP) as the fourth largest digital asset by market cap.