Bitcoin rally pushes crypto market value to $2trn

Bitcoin rally pushes crypto market value to $2trn

The cryptocurrency market capitalisation hit an all-time high of $2 trillion on Monday.

Reuters reports that the figure is according to data collected from CoinGecko and Blockfolio, as gains over the last several months attracted demand from both institutional and retail investors.

It said the crypto market cap was at $2.02 trillion at midday on Monday.

The surge in crypto market cap was led by Bitcoin, world’s most valuable cryptocurrency, which currently has a market capitalisation of $1.1 trillion — half of total global crypto market cap.

Analysts said as long as bitcoin stays above $53,000, it will be able to maintain its $1 trillion market cap.

Ethereum, the second biggest cryptocurrency in terms of market cap, was up 1.5% at $2,107, with a market cap of $244 billion. It hit a record high of $2,144.99 last Friday.

“While two trillion dollars in market cap is a sizable amount of value stored in the blockchain format, it is still less than 1% of the value that can be stored in that format, which means there is still much further to go in terms of both market cap and overall smart contract adoption,” said Sergey Nazarov, co-founder of Chainlink.

Recently, Bitcoin has gained acceptance among mainstream investors and companies, such as Tesla Inc, Mastercard Inc and BNY Mellon. This has caused the price of the virtual currency to increase rapidly in the market.

In March, Goldman Sachs, a multinational investment bank, said it will begin to offer investment opportunities in bitcoin and other digital assets to customers.