The regain in the price of cryptocurrencies in general in particular the top ones with the most market cap, especially Bitcoin, has turned the tables for good to the market capitalization to cross $95 billion again. The recovery in the community towards the Bitcoin scaling solution updates, was a good push for investors to return as to it was weakened throughout the most July.
Compared to the beginning of the year the total cryptocurrency market cap increased for almost over $100 billion now. This was primarily caused by a string of positive news and sentiment around Bitcoin and Ethereum. The $100 bln mark was hit on June for the first time.
It’s interesting to see how 2017 has changed the market dynamics with Bitcoin’s market share dropping from approximately 90% to less than half. This doesn’t mean that Bitcoin hasn’t risen in price or market capitalization, but is more indicative of how much other cryptocurrencies have risen during the year. In exact terms, Bitcoin accounted for 87.33%, Ethereum accounted for 3.98%, and Ripple accounted for 1.32% of the combined market capitalization on January 1, 2017, and by mid-March Bitcoin’s market share had dropped to around 79%. It fell further to about 63% by the beginning of April. By June 20, although Bitcoin’s price was hovering at $2,500 levels, its market share touched a low of 37.13%, while Ethereum moved up to 30.04% and Ripple was at 11.09%.
In the last two weeks, all cryptocurrenies have been under pressure, pulling down the overall market capitalization to $62.5 billion. The decline and subsequent revival has helped Bitcoin regain its dominance; it now accounts for 47.6% with its market capitalization at $45.22 billion.
In terms of value, the top seven cryptocurrencies have market capitalizations in billions: Bitcoin’s is 45.2 billion, Ethereum’s is $20.95 billion, Ripple’s is $7.37 billion, Litecoin’s is $2.3 billion, Ethereum Classic’s is $1.47 billion, NEM’s is 1.46 billion, and Dash’s is $1.424 billion. These together hold $80 billion, which is equivalent to 84% of the overall market capitalization.
Original Author: Prableen Bajpai, CFA (ICFAI)