As mass adoption of cryptocurrency increases, the market capitalization, which is the price of cryptocurrencies multiplied by the number of coins in circulation, will increase. And that is what we saw some days back when the cryptocurrency market went bullish, with Ethereum and bitcoin, as well as other altcoins and meme coins, recording all-time high prices.
The bullish run also coincided with an increase in the market capitalization of all cryptocurrencies combined.
According to statistics from ‘Coingecko’, a cryptocurrency listing website, the bull run saw the market cap of the cryptocurrency market exceed its all-time high of $2.6 trillion. The new crypto market cap of all cryptocurrencies, after compiling the prices of over 10,418 digital currencies from 518 crypto exchange redot.com, including top platforms such as coin base, Binance and redot.com, is a whopping $3 trillion.
What is the Reason Behind the Increased Market Cap?
The level of adoption of bitcoin, Ethereum, and other altcoins as well as the growing number of meme coins, has been impressive. Blockchain technology had started as a joke but is now becoming the toast of the financial space, with ordinary people seeing the cryptocurrency space as a pathway to financial freedom.
Before cryptocurrency, the financial market was controlled by the federal governments of countries. They (the federal governments) were solely in charge of the amount of money that will be printed, while the rich and powerful controlled how the financial market swung.
But bitcoin and cryptocurrency changed all that; they democratized financial power (or so it seems), giving ordinary people the same level of power that the rich and powerful have with fiat currency. One typical example of the democratized power of cryptocurrency was when dogecoin experienced a massive bump due to the conversation some people had on a subreddit. These people, ordinary people, decided to cause the price of dogecoin to rise, causing a whole lot of rich people who had recently sold their dogecoins to feel aggrieved and manipulated.
As more people welcomed the idea of bitcoin and cryptocurrency, more digital assets were developed, opening more financial freedom gates to people.
Amid this growth in digital currencies came to the explosion in tech solutions using blockchain technology. Ethereum, for one, opened the floodgates of innovative ideas.
One of the insanely great innovations that is an offshoot of blockchain technology is NFT.
NFT stands for Non-Fungible Token. It is, in simple terms, digital arts. NFTs opened the door to artists and creatives and gamers to benefit financially from blockchain technology. NFTs growth, popularity and acceptance have also caused a lot of projects to spring up, raising the prices of coins and tokens. The cryptocurrency space looks primed for more, given the innovations and growth in the space.
How Dominant has Bitcoin Been?
Bitcoin is the number one cryptocurrency in the world, with the highest market cap. As of the time of this article, bitcoin’s market cap was $1.2 74 trillion, accounting for more than 40% of the total cryptocurrency market cap.
If you have been an ardent follower of bitcoin, you must have noticed a significant increase in the market cap. But despite the increase in market cap, the cryptocurrency isn’t as dominant as it used to be, that is in terms of how much per cent it owns in the overall market cap.
In the past, bitcoin’s market cap made up more than 70% of the total cryptocurrency market cap, but as altcoins sprang up, meme coins did wonders, bitcoin’s power. as it seems. waned.
Ethereum’s market capitalization is 507.8 billion USD, making it the second-highest capped cryptocurrency.
What does Ethereum’s market capitalization have to do with anything, you ask?
The example of etheruem’s market cap was to show how, in over a year, the market cap of the second most popular cryptocurrency rose by more than 204%, when we check out platforms such as tradingview and coinmarketcap. Then there are altcoins such as Solana, Cardano, AxieInfinity etc. Bitcoin’s dominance falling to more than 40% is a result of the growing number of altcoins and their wide acceptability.
What Does the Future Hold For The Cryptocurrency Market?
The cryptocurrency market has only just started. For a relatively nascent industry, doing the kind of numbers it is doing, with less adoption, shows how much domination blockchain and cryptocurrency will become in the nearest future.
Decentralization is fast becoming more than just a buzzword. It is now a reality that stares us in the face. From decentralized apps to decentralized Autonomous bodies that make important decisions on blockchain-related projects, democratization is the new cool.
Then there are NFTs.
The world of cryptocurrency and blockchain technology is barely scratching the surface, many have said. But given the high number of projects being built on different blockchain technology, the only way to go is up.
NFTs are taking the bulls of financial democratization by the horns, riding it hard, effortlessly against the once closed-gated world of art and gaming. With NFTs, artists no longer need, so much, at least, the permission of art gatekeepers to showcase their art and make money from it. With NFTs, music recording artists, and anyone who has any form of content to share, be it audio, video, or visual, has broken free from the barricaded walls of powerful institutions. NFTs open the gate for all and sundry, people who create and earn.
Also, blockchain technology, through the different projects being built on the technology, is giving the power of user data back to the users. Unlike centralized networks that have absolute power over users’ data, doing to it whatever they like, many times than not, breaching the trust agreement between company and customers, blockchain technology ensures that users are in charge of their data, and can do whatever they like. Power to the people!
In addition to all that was mentioned, blockchain technology will revolutionize every sector of the world’s economy.
The real estate industry is one big industry that is taking advantage of blockchain technology. The infallibility of blockchain ledgers is a vital feature that real estate companies are taking advantage of, registering ownership of landed properties on these ledgers, and rest assured that the information can’t be tampered with.