Following the recent surge in the prices of some altcoins, the capitalization of the entire crypto market has, according according to Coingecko.com, reached $2.028 trillion dollars to surpass the worth of the entire US banking industry. This simply means that the value of the entire money in the crypto market today is now more than the value of the US banking industry.
In 2021 alone, the value of the crypto market has doubled from the first time the entire market reached a capitalization of $1 trillion dollars. In short, it took the crypto market over ten years to reached the milestone of $1 trillion but only about ten days to double that valuation mark.
According to Jim Bianco, the head of the analytics company known as Bianco Research, it will take the crypto market capitalization to double from here, that is, reach a $4 trillion capitalization to surpass the entire US financial system including banks, stocks, issuance, asset managers, etc.
At the present capitalization of $2.028 trillion, the crypto market now sits at slightly above 20% of the market capitalization of gold with experts pointing out that that Bitcoin, which currently has an estimated $1 trillion market cap, is slowing eating into the market cap of gold. There are quite a high chance that Bitcoin will hit, or possibly surpass, a valuable of $4 trillion to singlehandedly reach 40% of gold's valuation on or before the end of this bull cycle.
Although a lot of factors must have contributed to the present growth of the crypto market, the arrival of institutional investors in the last quarter of 2020 played a very significant role. Grayscale, Microstrategy, etc were some of the institutional investors who, at various intervals, accumulated cryptos and made their holdings public.
It is really interesting to see how cryptocurrencies rose from obscurity only a few years ago to become asset classes that are not only fascinating millenials but some of the most prominent financial institutions and big names around the world.
Posted Using LeoFinance Beta