With a market value of $323 billion according data from cryptocurrency tracker CoinMarketCap, the crypto market is attracting a wealth of new, prominent investors and traders, according to Nairametrics.
The world of digital coins is swelling as of late, due to the total market capitalizations reaching a five-month high, with recent rallies in Bitcoin, Ethereum and Ripple, along with several altcoins. The movement, according to Nairametrics, indicates that investors and traders have bet against inflation-prone currencies.
Bitcoin, gained more than 9 percent and got close to $11,000 for the first time in months after some backsliding due to the pandemic. According to a PYMNTS report, Bitcoin hit $10,200 on July 26 after falling by more than $800 earlier in the year. The pandemic forced Bitcoin to halve for the third time in May, cutting down on the rewards able to be earned.
But Bitcoin has played a particularly major role in the current upswing; around 62 percent of the current capitalization surge has been attributed to it, Nairametrics reported. And among the 100 highest market capitalizations, 20 of the 30 projects have seen positive gains in the past day (as of July 29) are in the top 40.
While the past few months have centered on Defi and altcoins, now Ethereum, Ripple and Tether have begun to dominate again.
Cryptocurrency has been going mainstream for a while now, with U.S. officials even talking about the possibility of a digital dollar in June. The idea would constitute an electronic mode of currency that exists digitally but could be used to pay for goods and services like the physical currency that most Americans are used to. Some experts pointed to the failures in traditional banking, such as long wait times for retail bank transfers, as a reason to try a new digital coin.
There was some pushback, however, with Sen. Sherrod Brown of Ohio asserting the absurdity of trusting “Big Tech” with the country’s banking systems.