In the last three months, Bitcoin has risen 53% to $58,000, while Ethereum has risen 83.8 percent to $3,170.
On February 5, 2021, when Bitcoin was approaching $37,800 and Ethereum was at $1,724, it was $1.15 trillion. Let's fast forward to May 3, 2021: Bitcoin is now up 53% to $58,000, Ethereum is up 83.8 percent to $3,170, and the total market capitalization of all cryptos has doubled. According to CoinMarketCap numbers, the total market cap of 9,541 coins briefly surpassed $2.3 trillion on Monday, as investors' enthusiasm for Bitcoin and other cryptocurrencies grew. However, at the time of filing this paper, the overall market capitalization had fallen to $2.28 trillion.
"Though it appears to be a three-month growth spurt, the momentum has been building since the beginning of 2020, when many western institutions began to invest in this emerging asset class. Tesla, Facebook, Paypal, Visa, Mastercard, a slew of hedge funds, and even family businesses have shown interest in cryptocurrencies as a complement to their conventional investments. We believe we are only at the beginning of a big curve ahead with these Wall Street stalwarts coming in to help adoption,” Vikram Subbura, Co-Founder and CEO, Giottus Cryptocurrency Exchange, told Financial Express Online.
Investment banks like Morgan Stanley and JPMorgan have begun to sell bitcoin funds to their high-net-worth customers. One of the main drivers of the crypto ecosystem's development has been institutional interest. Furthermore, last month's direct listing of crypto exchange Coinbase was a landmark moment in the global crypto ecosystem's brief background. This also signalled a change in the popular acceptance of cryptocurrencies. The achievement will also enable crypto proponents to press for the widespread adoption of digital assets.
In only three months, the market capitalization of Bitcoin has risen from $700 billion to about $1.1 trillion and Ethereum's market capitalization has risen from about $180 billion to over $360 billion. When it comes to Decentralized Finance (DeFi), a significant number of initiatives have been added to DeFi in the last quarter, in my opinion. We've also seen the overall valuation of DeFi double in that period, from $35 billion to about $72 billion now. Furthermore, the non-fungible token (NFT) market has swept the globe. The market is becoming more enthusiastic about Decentralized Finance protocols as more NFTs are developed. These are the three major factors driving the market cap of cryptos, according to Ashish Mehta, co-founder of DigitX.
DeFi is a decentralised finance initiative that includes decentralised lending and investing, decentralised markets, yield farming protocols, and decentralised insurance, among other things. NFTs, on the other hand, are tokenized artworks or exclusive memes provided via a smart contract-supported digital auction medium. A digital painting by artist Beeple, for example, was sold for $69 million via an NFT marketplace offering in March. However, the majority of fund managers still see Bitcoin as a speculative bubble. According to the April 2021 Global Fund Manager Survey of around 200 institutional, common, and flexible investments chiefs internationally by Bank of America, 74% respondents trusted Bitcoin to be an air pocket while just 16% couldn't help contradicting the idea.
The cryptocurrencies suggestions/recommendations in this story are from the respective commentator. DrForex does not bear any responsibility for their advice. Before trading or investing in cryptocurrencies, please speak with your financial advisor.
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