China- On Monday, for the first time cryptocurrency market topped by $2 trillion drivers by a rally in the ether which is the second-largest digital coin.
As per the price-tracking website CoinGecko, in more than two months, the capitalization of the cryptocurrency has doubled. However, the retail and institutional investors piled into space.
Bitcoin is noted as the biggest digital currency which accounts for more than 50% of the whole cryptocurrency market capitalization. However, Bitcoin has now rallied more than 100% this year itself and thus this helped in driving the cryptocurrency market higher.
In the last month, bitcoin touched the highest record which is more than $61,000. According to Coindesk data, on Tuesday, almost the digital coin was trading at about $58,800.
Well, as per the latest boost in the cryptocurrency market, it seems that it has been driven by ether, it is the digital coin that powers the Ethereum blockchain.
Bitcoin helps in running technology called the blockchain which is basically the public ledger of activity as well as the transactions that take place by using the cryptocurrency. When compared to the Ethereum blockchain is like a software platform that permits the developers to build the app on top of it. However, the users can then spend ether on these apps. Thus, smart contracts are key features of Ethereum. Moreover, these are contracts that can be automatically executed using code.
Further, the growing excitement is all about the utilization of Ethereum which is so-called decentralized finance, or DeFi, applications. However, these are blockchain-based finance services like lending that could be theory bypass banks and brokerages. However, the users are of these apps might transact by using cryptocurrency.
Ethereum has now become an underlying technology that is behind the recent craze in non-fungible tokens, or NFTs which is a new type of digital asset.
Billionaire investor Mark Cuban owned ether and mentioned that it is the “closest we have to a true currency.”
Now, Ether hitting an all-time high of $2,151.25 on Tuesday morning Singapore time, as per the CoinDesk. This is more than 180% year-to-date.
Undoubtedly, digital currency is finding interest among companies. However, the Chinese app maker Meitu has brought $22.1 million worth of ether last month by making it one of the first major companies to do it.
Bitcoin has now remained the powerhouse of the cryptocurrency market and more in the last few months. It saw a bigger increase in interest among the companies and large institutional investors.
Now, Square and Tesla are the handful of companies that have purchased bitcoin. In meantime, major investment banks are now exploring ways to permit clients to get involved with digital asset investments. As per the report, it is found that Goldman Sachs is now gearing up to launch its first investment vehicles for bitcoin and some other digital assets to clients for the private wealth management group.
The investors are expanding their portfolio of investment products and others are watching Grayscale Investments that runs one of the largest publicly traded bitcoin funds. This is also known as the Grayscale Bitcoin Trust.
On Monday, the company mentioned that it is “100% committed” that is converting that trust into an exchange-traded fund or ETF. This will be effectively keeping track of the price of the bitcoin and permits the traders to play the price movement without the owning of the cryptocurrency itself. Moreover, it can be a way for more investors to get involved in the bitcoin market.