The market capitalization for cryptocurrencies exceeded $ 2 trillion

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The market capitalization for cryptocurrencies exceeded $ 2 trillion

Cryptocurrencies hit a major milestone on Monday as the value of the cryptocurrency market surpassed $ 2 trillion for the first time in history, due to a rally on the ether. It is the second largest cryptocurrency in the world. The cryptocurrency market achieved a phenomenal result as its market capitalization doubled in just two months. Unsurprisingly, the world’s largest cryptocurrency accounts for more than 50% of total cryptocurrency market capitalization. Bitcoin gained more than 100% this year alone, and that factor helped propel the market higher.

In March, Bitcoin was looking to hit a record high of over $ 61,000. It traded at around $ 58,800 on Tuesday. In addition to Bitcoin, ether also played an important role. The recent boom in the cryptocurrency market appears to be due to the world’s second largest cryptocurrency, the digital coin that powers the Ethereum blockchain.

As in the case of Aether, Bitcoin also runs on a technology called blockchain, which is a public activity book. Thanks to the blockchain, it is also possible to carry out transactions. Interestingly, the Ethereum blockchain is more like a software program. This program allows developers to create apps on it. Users have the option to spend ether on these apps.

It is possible to use Ethereum in so-called decentralized finance or DeFi applications. We’re talking about blockchain-based financial services like loans that banks and brokers could theoretically bypass. Users of such apps can carry out transactions with cryptocurrency.

The price of ether hit an all-time high of $ 2,151.25 in Singapore on Tuesday morning. Ether is up more than 180% since the start of the year.

Cryptocurrency and Institutional Investors

Bitcoin is known around the world and remains the powerhouse of the cryptocurrency market as well. In addition, the interest of companies and large institutional investors has increased sharply in recent months. For example, Tesla and Square are among a handful of companies that have bought Bitcoin.

At the same time, large investment banks are looking for ways to give clients the opportunity to invest in digital assets. It’s hard not to disagree with them given the latest results. Last month, Morgan Stanley offered its wealth management clients access to bitcoin funds. It was the first major US bank to offer such a service. Based on the preliminary information, Goldman Sachs is preparing to offer clients of its private wealth management group its first investment vehicles for Bitcoin and other digital assets.

The post-cryptocurrency market cap of over $ 2 trillion first appeared on FinanceBrokerage.

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