Paypal, Visa, Mastercard, etc. have shown interest in bitcoin. (Photo file)
On February 5, 2021, it was $ 1.15 trillion when Bitcoin was approaching $ 37,800 and Ethereum at $ 1,724. Cutoff to May 3, 2021: Bitcoin is now 53% to $ 58,000, Ethereum 83.8% to $ 3,170, and the combined market cap of all cryptocurrencies has now doubled. According to CoinMarketCap, the total market cap of 9,541 coins briefly hit the $ 2.3 trillion mark on Monday as investor enthusiasm for Bitcoin and other cryptocurrencies continued. However, the total market capitalization has dropped slightly to $ 2.28 trillion as of this writing.
“While this appears to be a sudden rise in three months, the gains started in early 2020, when many Western institutions began investing in this new asset class. Tesla, Facebook, Paypal, Visa, Mastercard, many hedge funds and even family institutions have shown interest in cryptocurrency as a defense against their traditional investments. With these Wall Street pillars emerging to support adoption, we think we are still at the beginning of a big forward curve, ”said Vikram Subbura, co-founder and CEO of Giottus Cryptocurrency Exchange for Financial Express Online.
Investment banks such as Morgan Stanley and JPMorgan have also begun offering their wealthy clients access to bitcoin funds. Institutional interest in the crypto ecosystem has been one of the main drivers of its growth. In addition, the direct listing of crypto exchange Coinbase last month was a landmark event in the short history of the global crypto ecosystem. It also marked the growing acceptance of cryptocurrencies in mainstream finance. The move will also allow cryptocurrency supporters to lobby for the spread of digital assets.
See also: Did Elon Musk sell his bitcoin? Tesla CEO explains why his company sold 10% of its stake
“The market capitalization of Bitcoin has grown from $ 700 billion three months ago to about $ 1.1 trillion now. Ethereum’s market capitalization has also doubled from roughly $ 180 billion three months ago to over $ 360 billion. In my opinion, when we talk about Decentralized Finance (DeFi), a lot of projects have been added to DeFi in the last quarter. We also saw the total value of DeFi doubling over this period, from $ 35 billion to about $ 72 billion today. In addition, the non-fungible token (NFT) market has taken the world by storm. More and more NFT creations are causing the market to become more interested in decentralized finance protocols. These are three main reasons for increasing cryptocurrency market capitalization, ”Ashish Mehta, co-founder of DigitX, told Financial Express Online.
DeFi is a decentralized financial project that provides lending or borrowing on a decentralized platform, decentralized exchanges, crop growing protocols, decentralized insurance, among others. On the other hand, NFTs are unique works of art or memes, collectibles in symbolic form, offered in a smart digital auction, backed by a contract. For example, a digital painting by artist Beeple was sold in March for $ 69 million as part of an offer on the NFT Marketplace. However, most fund managers continue to believe that Bitcoin is a bubble. According to a survey conducted in April 2021 by global fund managers of about 200 institutional, mutual and speculative fund managers around the world by Bank of America, 74% of respondents believed Bitcoin to be a bubble, while only 16% disagreed.
The cryptocurrency suggestions / recommendations in this story come from the respective commenter. Financial Express Online is not responsible for their advice. Before trading / investing in cryptocurrency, consult your financial advisor.
Get current BSE, NSE, US market and latest NAV stock quotes, mutual fund portfolio, see the latest IPO news, top performing IPOs, calculate your tax with an income tax calculator, find out the best market winners, top losers and best equity funds. Like us on Facebook and follow us on Twitter.
Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.