The interest in cryptocurrencies continues unabated. This is made clear by the entire crypto market capitalization. The Crypto market was able to reach a new record all-time high of over $1.9 trillion. This is shown by current data from CoinMarketCap.
Since the beginning of the coronavirus pandemic, the demand for alternative investment options has increased enormously. More and more investors want to buy cryptocurrencies like Bitcoin.
Crypto Market Overtakes Oil & Gas Giant Saudi Aramco
With the latest development, the crypto market has overtaken the world’s second most valuable company in terms of market cap — oil, and gas giant Saudi Aramco. The petroleum and natural gas company’s market cap currently stands at $1.8 trillion.
The market cap shows the market value of an asset and at the same time the popularity of Bitcoin, for example. The higher the market cap, the stronger the cryptocurrency is in the market. To calculate the crypto market cap, just multiply the current price by the current amount of coins in circulation.
You can see which cryptocurrency is currently in great demand and performing well on the basis of the market cap. A distinction is made between large cap, mid cap, and small cap. The smaller the market cap, the more volatile the price is. Therefore, cryptocurrencies with a large cap are considered to be more secure and those with a small cap — more risky ones.
Most recently, the crypto market was able to overtake global companies such as Google, Amazon, and Microsoft. The crypto hype is in full swing and even short-term price corrections don’t seem to break the trend.
NFT Hype Is Fueling the Crypto Boom
Non-fungible tokens are the hot thing in the crypto market right now. The art sector, in particular, is enjoying the possibilities that the tokens offer. NFT enables creators of digital arts to transfer ownership to a buyer in a verifiable and one-off manner. This transfer is recorded on the Ethereum blockchain.
Just recently, the artist Beeple was able to sell his artwork ‘Everydays: The First 5000 Days’ for $69 million at an auction held by a prestigious Christie’s auction house in London.
NFT coins like Theta have rapidly increased in price as a result of the hype. From the last all-time low until today, the coin has gained around 30,000 percent, as data from CoinGecko show.
Conclusion: Crypto Boom Is in Full Swing
The market cap of the crypto market shows speaks for itself — cryptocurrencies have never been that popular before as they are today. The Coronavirus crisis has encouraged many people to deal more with the topic of financial freedom. More and more institutional investors and companies are also relying on cryptocurrencies such as Bitcoin or Ethereum. Whether it be an investment or an interest in technology itself. Just recently, the electric car company Tesla announced that you could also pay for its vehicles with Bitcoin.
The crypto boom is in full swing and it can be assumed that 2021 will be a year of cryptocurrencies!