The total cryptocurrency market capitalization broke $2.5 trillion as the United States Securities and Exchange Commission seems to be open to approving additional crypto futures-linked exchange-traded funds.
According to data from Cointelegraph Markets Pro, the value of all cryptocurrencies has more than doubled since hitting a $1 trillion market capitalization in January. The prices of Bitcoin (BTC) and Ether (ETH) rose to more than $63,000 and $3,800, respectively, as the total crypto market capitalization dipped its toes above $2.5 trillion.
BTC remains the biggest cryptocurrency by market cap at roughly $1.2 trillion, ETH in the second position at more than $448 billion, and Binance Coin (BNB) third with $81 billion. KuCoin Token (KCS), Zcash (ZEC) and Polygon (MATIC) have rallied the most among other cryptocurrencies in the last seven days, rising more than 20% to reach prices of $13.99, $142.44, and $1.47, respectively.
One of the indicators for the overall health of the digital asset class, the crypto market cap, is at highs not reached since May when the valuation peaked at more than $2.4 trillion before a major downturn effectively halved it to roughly $1.3 trillion. The surge comes as the first Bitcoin futures-linked exchange-traded fund in the United States began trading on the New York Stock Exchange, providing additional investors exposure to crypto.
Related:All-time highs next? Bitcoin holds $62K as the dollar index tumbles to 3-week lows
The crypto market has faced its share of regulatory and legal challenges in 2021, which could have threatened the prices of major tokens. First hitting a $1 trillion market capitalization in January, the space has reached prices far beyond the highs of the 2017 bull run, with volatility still present across major asset classes.
Cryptocurrency data aggregator CoinGecko has released its Q3 2021 report showing massive gains across several crypto market sectors.
Following the May market crash, Q3 began on a low ebb for the crypto space, with market capitalization even dipping further in late July below the $1.2 trillion, less than half of the $2.5 trillion all-time high recorded only two months prior.
However, market capitalization did recover in Q3, even rising as high as $2.3 trillion in early September.
According to the CoinGecko report, Bitcoin (BTC), gaming “coins,” and nonfungible tokens (NFTs) dominated the crypto market space in Q3.
Bitcoin recorded a 25% increase between Q2 and Q3 and has continued on this upward trajectory, even reaching $60,000 for the first time in five months.
The network’s hash rate also experienced a resurgence in Q3, indicating a recovery from China’s sweeping crackdown that forced miners to relocate overseas.
Gaming tokens like Axie Infinity (AXS), Illuvium (ILV), and Gala (GALA), as well as the NFT space in general, did record massive gains in Q3 as well.
AXS, in particular returned almost 1,000% quarter-on-quarter gains, with its 2021 performance topping 13,700%.
In terms of NFT trading volume, OpenSea continued its dominance of the market segment. Indeed, OpenSea and Rarible recorded a total trading volume of about $6.8 billion in Q3 according to the CoinGecko report.
Related:Crypto markets soar after Fed commits to printing and Evergrande plans to pay its debt
These significant market gains also came on the back of a storm of regulatory concerns regarding cryptocurrencies. Policymakers in the United States seemingly applied pressure with calls for stricter laws surrounding market segments like stablecoins.
Despite the steady gains recorded in Q3, the crypto market recovery is still some way off the activity levels seen before the May crash.
For one, CoinGecko reported that spot trading volume across the major centralized and decentralized exchanges declined over 42% in Q3.
Bitcoin’s latest momentum has made the market capitalization top the $1 trillion mark, a milestone first seen in February.
The leading cryptocurrency was up by 5.91% in the last 24 hours to hit $54,517 with a capitalization of $1.03 trillion during intraday trading, according to CoinMarketCap.
Santiment believes Bitcoin’s dominance and price have been driven by a surge in token circulation. The on-chain metrics provider explained:
“Bitcoin dominance has been on a major rise the past couple of days, and $54.6k has been breached for the first time since May 12th. Our NVT Token Circulation model is indicating October is the first month we’re seeing a bullish divergence since February.”
Santiment previously stated that Bitcoin’s price could witness a surge given that its circulation had reached levels last seen in July. The notion presented was that Bitcoin’s price is usually tagged along whenever circulation rises.
Will an ATH price be witnessed in the Bitcoin market soon?
According to Lex Moskovski, the CIO of Moskovski Capital,said:
“Record amount of Bitcoin has been moved in the last 2 weeks. Something’s brewing. Gun to head, ATH may happen sooner than we think.”
Therefore, Moskovski believes the record-high BTC transactions witnessed could send the price through the roof, given that an all-time high (ATH) price of $64.8K was set in mid-April.
By scaling above the $52K level, Bitcoin was able to breach a significant resistance area. Data analytic firm IntoTheBlock said:
“Bitcoin surpasses once again the $52K barrier for the first time since September 7th. The IOMAP reveals strong support right below $50K while approaching a highly contested area around $52,938. At this range, over 353.78K addresses previously bought 212,000 BTC.”
On the other hand, market analyst under the pseudonym CryptoHamster noted:
“Bitcoin has broken the resistance line – and the descending triangle (to the upside). Generally, it is a very bullish sign. Altcoins also support this growth, but one has to be careful about the false breakouts. It would be nice to see the retest and rejection.”
CryptoHamster believes that Bitcoin should retest the $51K level for a breakout to be fully confirmed.
Bitcoin has thus far remained the largest crypto asset in terms of market capitalization since its launch in 2009. Given the thousands of other cryptocurrencies that have come into existence over the years, could any of them ever become larger than Bitcoin (BTC) in terms of market cap?
“We are in the top half of the second inning of crypto and right now it looks like BTC will remain at the top however, like the Red Sox fell apart this year, we just don’t know,” managing partner of A&C Advisors LLC, Daniel Strachman, told Cointelegraph. Strachman’s experience includes decades of financial work and writing multiple books. “It comes down to market reaction and investor interest,” he added. “There is a lot of talk about Eth surpassing BTC and that is a reality but we need to play a few more innings to see what happens.”
The crypto industry has seen multiple market cycles, growing larger with each. CoinMarketCap, which lists crypto assets according to their market cap size, is a common source of data in the digital asset industry. Crypto assets have achieved massive dollar valuations. Almost all of the crypto assets in the top 100 on CoinMarketCap carry valuations over $1 billion — a sign of the crypto industry’s growth and significance.
Technology has developed significantly since Bitcoin’s inception over a decade ago. Discussions and comments regarding a “flippening” — industry lingo for a different cryptocurrency surpassing BTC in market cap — have surfaced from time to time. What might cause another crypto asset to surpass Bitcoin in market cap?
“Utility in the market and investor adoption and interest is what will drive one crypto asset or maybe two to surpass BTC,” Strachman said.
Bitcoin has gained prominence in the mainstream eye. The asset has a fixed and comparatively scarce supply, as well as a loyal following in the crypto industry, especially among a crowd called “Bitcoin maximalists,” who essentially see BTC as the only crypto that will succeed long term.
Related:MicroStrategy splashes $177M on Bitcoin, now holds almost 109,000 BTC
“The crypto market is an asset class that is here to stay,” Strachman said when asked about the likelihood (or lack thereof) of a BTC flippening and the significance of such an event. He added:
“It is not going away. If a crypto asset surpasses BTC it will be because of market forces both investor interest and market utility. If you look at the top five companies by market cap in 1980, they were Exxon, GM, Mobil Ford and Texaco, today they are Apple, Microsoft, Google, Saudi Aramco and Amazon – things change and that is ok because that is how free global markets work.”
The likelihood of a flippening remains difficult to quantify, although talk over the past several years has questioned Ethereum (ETH) as a potential contender.
Bitcoin’s (BTC) 65% recovery from sub $29,500 on July 20 to a swing high at $48,200 on Aug. 14 took less than a month and helped bring fresh bullish momentum back to the crypto market and traders who were dreading the prospect of another prolon bear market.
Currently, the BTC rally has stalled out near the $46,000 price level and this phase of sideways trading is giving altcoins an opportunity to step forward. As shown in the chart below, the total market capitalization of the altcoin market has risen 80% since July 20. Meanwhile, the Bitcoin dominance rate is down 10% since July 30.
Data from TradingView shows that the dominance rate of Bitcoin altcoins had been on the rise in recent weeks but this trend fizzled out for Bitcoin on July 30 as a number of altcoin projects rallied due to a market-wide oversold bounce, new partnerships and protocol updates.
DeFi and NFT projects hit record highs
Projects with a focus on NFTs and decentralized finance (DeFi) were the leading altcoin gainers over the past four weeks.
Three of the biggest gainers over the past month include Axie Infinity (AXS), Solana (SOL) and Terra (LUNA), which all saw their prices breakout to new record highs on Aug. 17
As shown above, AXS price surged nearly 400%, while LUNA and SOL increased by 340% and 187% respectively.
One interesting observation to note is that Solana and Terra began to see increased interest several days after the implementation of the London hard fork on the Ethereum network.
While the London hard fork introduced several beneficial changes to the Ethereum network, including a token burning mechanism that has the potential to make Ether deflationary, the upgrade did little to solve the problem of high transaction costs. This left the door open for competing layer-one solutions like Solana and Terra to gain market share.
Related: Eth2 staking contract ranks as single-largest Ether hodler with $21.5B
Analysts announce the start of altcoin season
The surge in altcoins has led many traders to forecast the dawn of a new altcoin season. According to The Moon, a pseudonymous Twitter analyst, altcoin seasons follow a major run-up in the price of BTC, especially when the price stalls or pullsback.
The altcoin season is happening right now exactly as I predicted!!! pic.twitter.com/Od0wef67ga
— The Moon (@TheMoonCarl) August 11, 2021
Further evidence that points toward the start of an altseason are found in the increasing number of altcoins notching new all-time highs over the past two weeks. Double-digit daily gains and price breakouts from projects like Audius and meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) are making headlines and crypto Twitter is abuzz with chitter-chatter about the hottest altcoins to watch.
Despite these strong performances, it’s interesting to note that the Altcoin Season Index is actually at its lowest point in 2 years, as highlighted in the tweet below.
The last 30 days were Altcoin friendly, but the Altcoin Season Index (90 days) is the lowest in 2 years.
What comes next?https://t.co/EbbDVymYJ5 pic.twitter.com/MjaTjU6zXM
— Holger (@rohmeo_de) August 16, 2021
What this means, in the long run, is up for interpretation, but one bullish take is that the altcoin rally seen in the past 2 weeks is just a prelude to the real altcoin season which has yet to begin.
To date, Bitcoin continues to be the leading market indicator that dictates the future direction of the crypto market as a whole, but data shows that consolidation phases often give altcoins an opportunity to push higher.
If Bitcoin price drops back toward $40,000 or below, then most analysts would expect altcoin prices to also move south. On the other hand, a rally above the $48,000 level is likely to see altcoin prices push higher.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The cryptocurrency market has continued a solid bullish trend in early August, with the total market capitalization nearing $2 trillion.
According to data from crypto data aggregator CoinGecko, the total crypto market cap broke the $1.9 trillion mark on Aug. 9, retouching this level for the first time since May 18.
Starting July 19, cryptocurrency markets recorded a notable rise, with market value surging nearly $700 billion. The market is still down roughly $700 billion from the all-time high of $2.5 trillion recorded on May 11.
In line with the strong recovery trend, major cryptocurrencies like Bitcoin (BTC) and Ether (ETH) have retested their mid-May levels in terms of market capitalization.
Bitcoin’s market value hit above $860 billion on Monday, surging this high for the first time since May 16, according to CoinGecko. After breaking into a $1 trillion asset earlier this year, Bitcoin experienced a major sell-off, with its market cap dropping to $560 billion as of July 20. As the Bitcoin price surged back above $45,000, BTC market value has increased by over 53%.
Ether, the second-largest cryptocurrency by market cap, has posted more gains since the bear market in July, surging nearly 81% from $204 billion on July 20 to $369 billion on Monday. The cryptocurrency underwent a major network upgrade on Aug. 5, with ETH price rallying 50% following the London hard fork amid investor expectations for the upgrade to solve issues like high transaction fees.
Related:Stablecoin market to have hit $1T by 2025, Unstoppable Domains CEO predicts
Amid a renewed bull crypto market, some major cryptocurrencies have experienced a ranking reshuffle in terms of market capitalization. Binance USD (BUSD), the third-largest stablecoin by market value after Tether (USDT) and USD Coin (USDC), dropped out of the top-10 most-valued cryptocurrencies list on Aug. 5, flipped by Uniswap’s governance token UNI. At the time of writing, BUSD is the 11th largest cryptocurrency by market capitalization of $12 billion.
As previously reported, the latest growth on crypto markets came after Tesla CEO Elon Musk disclosed that his aerospace firm SpaceX owns Bitcoin on July 22. The CEO also said that Tesla was planning to resume crypto payments for car purchases due to a significant drop in the percentage of non-renewable energy used for Bitcoin mining. Musk’s previous decision to stop BTC payments at Tesla — due to the currency’s high energy consumption — was seen as a major cause for Bitcoin’s price crash in May.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, has already started losing its market dominance to Ether (ETH), according to Celsius Network CEO Alex Mashinsky.
In a Monday interview with Kitco News, Mashinsky argued that the Ether “flippening,” or the hypothetical scenario in which Ether overtakes Bitcoin as the world’s most valued cryptocurrency, is already happening right now.
Mashinsky said that the flippening has already happened on Celsius. “We manage about $17 billion in deposits, or in customer coins, and the number one coin held in dollar terms is Ethereum,” he said.
Mashinsky also predicted that Ether will completely surpass Bitcoin in terms of market cap by 2022 or 2023:
“The flippening already happened. Ethereum already surpassed Bitcoin in dollar terms as the total holdings of the Celsius community, and I think that the broader market will follow it in the next year or two. We will see that flippening happening also in the broader market.”
Mashinsky went on to suggest that the main trigger for the upcoming flippening would be the difference between the key use cases of Bitcoin and Ether. According to the CEO, Bitcoin’s primary use case is the store of value, while Ether’s major use case is yield farming or the practice of staking or locking up crypto in return for rewards.
“Yield is an application that just has a broader user base. So I think over time you will see a broader adoption of Ethereum than of Bitcoin. But obviously both of them are exceptional applications and exceptional blockchains, and we will see a broad adoption of both, it’s just that one will exceed the other,” Mashinsky stated.
Launched in 2018, the Celsius Network is a decentralized lending and borrowing platform, allowing users to earn rewards by transferring their coins to the Celsius wallet and borrow dollars or stablecoins against their crypto collateral. The platform operates its own CEL token that is an ERC-20 coin running on the Ethereum network.
Related:Bitcoin’s active addresses fall below Ethereum’s after 60% drop in six weeks
Bitcoin has emerged as the world’s oldest digital currency and the most valued cryptocurrency, dominating altcoins like Ether in terms of the market cap. Ether, the second-largest cryptocurrency by market cap, was launched in 2015 and has yet to overtake Bitcoin in terms of market value.
At the time of writing, Bitcoin’s share of the crypto market — also referred to as Bitcoin dominance — is 44.6%, while Ether’s stands at 18.5%, according to data from CoinMarketCap.
Mashinsky is not alone in thinking that Ether will flip Bitcoin in terms of value. Last week, Galaxy Digital founder and CEO Mike Novogratz also predicted that Ether could become the “biggest cryptocurrency one day.”
On May 18, Bitcoin (BTC) and the overall cryptocurrency market faced another round of selling as fear, uncertainty and doubt (FUD) impacted investor sentiment after Reuters and various social media outlets reported that China would ban financial institutions and payment companies from providing services related to cryptocurrency transactions.
According to these reports, China also issued a warning to several Chinese trade associations about the dangers of cryptocurrency investing.
Data from Cointelegraph Markets and TradingView shows that bulls attempted to push the price of Bitcoin back above the $45,000 resistance level in the early hours on Tuesday only to have the price battered back below $43,000.
While the conditions for Bitcoin may appear dire to some, several fundamental developments including increased BTC outflows from the top U.S. crypto exchange Coinbase and the revelation that MicroStrategy used this most recent dip to buy another $10 million worth of BTC indicate the potential for further upside for the top cryptocurrency.
The precarious nature of the current market conditions for Bitcoin are perhaps summed up best in the following tweet from cryptocurrency analyst and Twitter personality Rekt Capital, which highlights the importance of the upcoming daily close for BTC.
Every time #BTC Daily Closed inside green support or above it – a bullish reversal would take place#Bitcoin is back at green support again but instead is hovering below it now
Green may flip to new resistance if BTC can’t Daily Close inside/above greenhttps://t.co/2p4FgWWEIi pic.twitter.com/2iGcjLkAgU
— Rekt Capital (@rektcapital) May 18, 2021
Altcoins shake off the downturn
Despite the full-frontal FUD assault that the crypto market has been under in recent weeks, many altcoins have seen their prices breakout over the past couple of days as traders rotate out of underperforming tokens and into tokens that have turned bullish.
The standout performance of the week goes to Polygon (MATIC), the rapidly rising Ethereum (ETH) layer-two solution that has morphed into an oasis for traders looking for lower fees.
According to data from Cointelegraph Markets Pro, market conditions for MATIC have been favorable for some time as evidenced it’s the recent VORTECS™ Score of 99 on May 15, which was recorded roughly 50 hours before its price rallied 83% from a low of $1.47 on May 17 to a new all-time high at $2.70 on May 18. This move took place as there was a record $6.84 billion in 24-hour trading volume.
Synthetix (SNX) has also received a boost in trading volume on Tuesday that has lifted its price 40% to an intraday high at $25.64, while the Binance Smart Chain-based Venus (XVS) DeFi platform has rallied 63% to an intraday high of $143.41.
Other notable double-digit gainers include 40% gains for Ark and Celer Network (CELR), as well as 20% gains for Aave (AAVE) and Helium (HNT).
The overall cryptocurrency market cap now stands at $2.076 trillion and Bitcoin’s dominance rate is 39.4%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Ethereum (ETH) has been the talk of the town since it hit its new all-time high at the beginning of the week. The world’s second-largest cryptocurrency spiked to a new all-time high (ATH) of $4,350 even though it has retraced to $4,316 at the time of writing, according to CoinMarketCap.
Ethereum’s remarkable bull run has pushed its market capitalization to the $500 billion level. ETH, therefore, needs to double this value to flip that of Bitcoin, which stands at $1.07 trillion, as alluded to by market analyst Lark Davis.
Moreover, Ethereum’s upward momentum is triggering a rise in Ether and Bitcoin’s implied volatility. The implied volatility spread is usually used as an indicator of upcoming shifts in the market, and it previously stood at 30%. It therefore means that crypto traders might be shifting their primary focus to Ethereum, in comparison with Bitcoin (BTC).
BTC has been struggling to maintain its dominance. It recently dropped to 44%, which is the lowest level it has gotten since 2018.
Ethereum’s journey to $5,000
According to crypto trader Carl Martin tweeting under the pseudonym The Moon:
“Ethereum to $5,000 is a matter of days.”
A price surge towards $5,000 is anticipated by many, as acknowledged by Skew. The crypto data provider explained:
“Large ETH open interest building up on $5k strike.”
Ethereum’s bull cycle has been supported by the boom in decentralized finance (DeFi) and non-fungible token (NFT) sectors. Furthermore, the anticipated launch of Ethereum 2.0 has also played a pivotal role in ETH’s uptrend.
More investments continue to trickle in to the Ethereum 2.0 deposit contract as the total value locked has reached a record-high of $18.86 billion, according to data by on-chain metrics provider Glassnode.
Additionally, the number of ETH addresses holding more than 0.01 coins has gotten to an ATH of 15,28 million. As the clock ticks, time will tell whether Ethereum will hit the psychological price of $5,000 soon.
Ether (ETH), the second most-valued cryptocurrency after Bitcoin (BTC), has hit a major milestone amid the ongoing price rally.
On May 12, Ether price set another historic record, surging to as high as $4,346, according to data from CoinMarketCap. Ether’s market capitalization briefly surpassed $500 billion, reaching nearly $505 billion on Wednesday.
The new milestone marks Ether’s ongoing massive surge after ETH surpassed a $4,000 price mark for the first time in history on May 10. At the time of writing, ETH is trading at $4,317, up more than 6.4% over the past 24 hours and seeing massive gains of about 30% over the past seven days.
Following the parabolic surge, Ether is now larger than payment giant Visa or major investment bank JPMorgan in terms of market capitalization. At publishing time, Visa’s market valuation amounts to $481 billion, while JPMorgan’s market cap stands at $488 billion, according to data from financial information website MarketWatch.
Ether is the second cryptocurrency to hit a $500 billion market cap after Bitcoin. Ether took significantly less time to become a half a trillion-dollar asset. Launched in January 2009, Bitcoin took nearly 12 years to reach a $500 billion market capitalization in December 2020 at a price above $27,000. As the first version of an Ethereum cryptocurrency protocol was launched in July 2015, Ether is now five years and 10 months old.
As previously reported by Cointelegraph, Ethereum co-founder Vitalik Buterin became a billionaire after the Ether price rose above $3,000 on May 3. Megan Kaspar, a crypto analyst and co-founder of digital asset investment firm Magnetic, believes that Ether is now on track to hit a price target between $8,000 and $10,000 by late 2021. The analyst previously reportedly predicted that ETH would hit $3,400 when the cryptocurrency was trading about $1,200.