Cryptocurrency market cap rises over $3 trillion, as Bitcoin and Ether rally to new ATHs

For the first time on Tuesday, according to data from CoinGecko, the cryptocurrency market cap surpassed $3 trillion.

Cryptocurrency market cap
Source: CoinGecko

The fresh accomplishment follows bitcoin and ether reaching new all-time highs. At the time of writing, BTC is selling for approximately $67,033 and ETH costs around $4,756.

The cryptocurrency market cap has evolved considerably during the last year. In late 2020, the market capitalization was around $500 billion. The market capitalization of cryptocurrencies has skyrocketed from $1 trillion in January 2021 to over $2 trillion in May 2021 to over $3 trillion presently. Cryptocurrencies have grown more popular and are now more widely accepted over that period.

According to CoinGecko, the current top 10 cryptocurrencies by market capitalization are as follows: BTC, ETH, Binance Coin (BNB), Tether (USDT), Solana (SOL), Cardano (ADA), XRP, Polkadot (DOT), Dogecoin (DOGE) and US Dollar Coin (USDC).

Bitcoin price surges to a new ATH pushing crypto market cap to new record

On Tuesday, bitcoin hit a new all-time high, extending the cryptocurrency’s tremendous bull run. The value of bitcoin climbed above $68,000 for the first time in history, reaching $68,382.60 in Asian trading hours.

Cryptocurrency market cap
Bitcoin price chart. ource; Coingecko

Bitcoin is appealing to investors because it is seen as a store-of-value asset like gold, making it a refuge during times of inflation. Meanwhile, according to data from Glassnode, the number of unique wallets with a balance above zero BTC has surpassed a previous high of 38.7 million in May and is now at almost 39 million.

Furthermore, Glassnode claimed in its weekly report that BTC balances on exchanges have continued to drop, however the hashrate, a measurement of the overall computational power being used to safeguard the Bitcoin blockchain, may rise before year-end – after the hashrate plummeted in July as a result of China’s Bitcoin clampdown.

The price of ether, which is only second to bitcoin’s in terms of price, hit an all-time high of $4,823.95. Following the Ethereum London hard fork upgrade, reports emerged that the network burned more ether than it produced for at least a week, causing the price of ether to skyrocket. The fork allowed a large amount of ether’s transaction fees to be burned rather than sent to miners.