The market capitalization of cryptocurrencies exceeds for the first time 2 trillion dollars

GUANGZHOU, China – The value of the cryptocurrency market exceeded $ 2 trillion for the first time on Monday, driven by an ether rally, the second largest digital currency.

In just over two months, the market capitalization of the cryptocurrency market has doubled, according to price tracking site CoinGecko, as retail and institutional investors gather in space.

Bitcoin, the largest digital currency, accounts for over 50% of the entire market capitalization of cryptocurrencies. Bitcoin has accumulated over 100% this year alone and this has contributed to the growth of the cryptocurrency market.

Last month, bitcoin hit a record high of $ 61,000. The digital currency was trading at about $ 58,800 on Tuesday, according to Coindesk data.

But the latest momentum in the cryptocurrency market seems to have been driven by ether, the digital currency that fuels the Ethereum blockchain.

Bitcoin also runs on a technology called blockchain, which is a public record of activity and a way in which transactions can take place using cryptocurrency. In comparison, the Ethereum blockchain looks more like a software platform that allows developers to build applications on top of it. Users can then spend ether on these applications.

So-called smart contracts are a key feature of Ethereum. These are contracts that can be executed automatically using the code.

There is a growing enthusiasm for using Ethereum in so-called decentralized financing or DeFi applications. These are blockchain-based financial services, such as loans, which in theory could bypass banks and brokerages. Users of these applications can trade using cryptocurrencies.

Ethereum also has the core technology behind the recent madness in non-fungible chips or NFT – a new type of digital asset.

Bitcoin still remains the power of the cryptocurrency market and, in recent months, there has been a great increase in interest between companies and large institutional investors.

Tesla and Square are among a handful of companies that have purchased bitcoin.

Meanwhile, major investment banks are exploring ways to enable customers to get involved in investing in digital assets. In March, CNBC reported that Morgan Stanley became the first major US bank to offer its wealth management clients access to bitcoin funds. CNBC also reported last month that Goldman Sachs is preparing to launch its first investment vehicles for bitcoin and other digital assets to customers of its private wealth management group.

There is also hope among investors for a growing portfolio of investment products and many are pursuing Grayscale Investments, which manages one of the largest publicly traded bitcoin funds. It is known as the Grayscale Bitcoin Trust.

The company said Monday it was “100% committed” to turning that trust into a traded fund or ETF. This would effectively track the price of bitcoin and allow traders to play the price movement without holding the cryptocurrency itself. It could be a way for more investors to be involved in the bitcoin market.