Cryptocurrency Skyrockets to $300 Billion Market Cap
Headlines continue to be filled by the likes of Bitcoin, Ethereum, and cryptocurrency as a whole. The latest wave of digital currency craze has led to major inflation of values across the board. As a result, crypto’s total market cap has surpassed the $300 billion market cap only weeks after first surpassing $200,000,000,000.
Concerns about whether or not the cryptocurrency “bubble” is escalating too fast, but the only thing known for sure is that the past few months have seen a remarkable increase in value to a range of tokens in addition to the accompanying blockchain technologies.
The major players in the market (Bitcoin, Ethereum, Litecoin) have all seen astronomical rises. In addition to the regular names, tokens like Ripple, IOTA, and EOS are gaining more traction amongst all traders. Well-rounded growth is perhaps the most important aspect of whether or not digital currencies can be viewed as a viable option moving forward, or something that may fall after the short-term.
Bitcoin stands as the most valuable and most recognizable digital token to date. New investors regularly start with the primary player before branching into newer, more unknown technologies. Carrying over half of the market cap, the total growth is unsurprising as bitcoin itself nears a $10,000 valuation per token. The rapid expansion almost seems tied to buyers’ desire to see the value hit certain benchmarks, but the reasoning is hardly necessary for those buying and selling their way to a profit.
Concerns regarding the unsustainable growth of bitcoin are certainly warranted given limited practical use of the token at present. Future projections and valuations come from expected growth in utility on a day-to-day basis. More and more businesses are looking at cryptocurrency as a valid means of payment, but that remains nothing more than conjecture. The rise in value does come with the accompanying excitement and expectation from investors. Social expansion that is remarkably unprecedented when many futures did not see bitcoin reaching the $10k mark until December of 2018.
The general public’s interest in cryptocurrency holds a broader scope than one token. When the total market cap was hovering over $200 billion, bitcoin held nearly 60% of the total market. Now, at over $300 billion, BTC’s influence is below 55% despite its own rise in value. Excitement and utility for blockchain technologies and their respective tokens is seemingly universal as opposed to a handful of select tokens like in the past.
Major names Bitcoin, Bitcoin cash, and Ethereum still account for over two-thirds of the market, but a less monopolized outlook is promising for cryptocurrency. A select token may be the first to break through as a valid currency, but it cannot be expected to hold without the utilization of other options. Owners should be weary of the idea that this sudden rise in value will be met with a sharp drop like in months past, but the overall positive trend of so many tokens promises some sort of return for the majority of investors.