For the cryptocurrency market, it’s been a good few weeks. The market reached yet another landmark today as the industry’s combined market cap hit the $1 trillion mark for the first time, on the back of Bitcoin climbing to one ATH after another and EthereuFm heading past $1000 on the price charts.
Bitcoin, the world’s largest cryptocurrency, was driving the rally that led to the market cap rise, with BTC trading at $37,110 at press time since crossing many psychological barriers earlier this week. Bitcoin also held 68.5 percent of market dominance, while Ethereum, the world’s biggest altcoin, reported a 13.3 percent market share.
Interestingly, though much of the industry has seen quite a reshuffle over the past few years, the role and supremacy of the top two cryptocurrencies in the world have remained unassailable.
However, many experts claim that BTC and ETH alone have not been responsible for the crypto-market boom. Some argue that DeFi’s exponential growth and higher institutional interest in cryptography can also be due to its contribution to the development of the sector.
XRP, the fourth-largest cryptocurrency in the crypto-market, seemed to be an exception to the general market rally. Although it briefly surged on the charts, the SEC file charges against Ripple were seen at the end of 2020, following which, XRP fell like a stone, with several traders and holders loosening their previously heavy XRP bags.
Ergo, while most of the crypto-assets of the market reported weekly gains of over 50%, XRP was struggling.
The total market cap had risen to an ATH of $829 billion, the last time the market experienced such a rally. Since the market was bearish for much of the two years after that, until recently, when BTC hiked on the charts and altcoins from the market followed, the figures never reached that amount again.
Many on-chain analysts and familiar market advocates have indicated since the latest bull run started that today’s crypto market is very different from that of 2017, with the latter frequently accused of being a FOMO-driven bubble.
Meltem Demirors was quick to take notice as Chief Strategy Officer at Coinshares:
“It was just a wild, frothy time and 2017 for many of us felt the same way. A lot of coins, a lot of names, a lot of capital flying around. This cycle is so different because the narrative is very focused on Bitcoin.”