The crypto market is rushing from one record high to the next and has cracked supposedly insurmountable mark in rally mode.
It happened: Overnight, the total market capitalization of all listed cryptocurrencies has cracked the magic mark of one trillion US dollars for the first time. The all-time high is the interim result of a rapid rally that was triggered by Bitcoin’s (BTC) price reaching 20,000 US dollars just under four weeks ago. While Bitcoin has risen to 37,000 US dollars in the same period, the total market capitalization has also almost doubled in just one month.
Bitcoin rally pulls overall market upwards
With a market capitalization of currently around 690 billion US dollars, the lion’s share of the total market capitalization is accounted for by the crypto bandwagon Bitcoin, whose dominance over the altcoins thus amounts to almost 70 percent. The total value of all cryptocurrencies becomes somewhat more tangible when compared to the largest publicly traded companies.
Crypto Market Pulls Past Google…
If the crypto market were a public company, it would have snuck into fifth place among the world’s largest listed companies with a total market capitalization of one trillion U.S. dollars, according to Statista. Consequently, the chair would have to be vacated by the not entirely unknown US holding company Alphabet Inc, formerly Google. As of 2019, the company has a market capitalization of 919 billion US dollars.
There is still some catching up to do to reach the top 4, but the gap to the top class is also getting shorter and shorter. Meanwhile, the market cap of the three tech giants Amazon, Apple and Microsoft is between USD 1.23 and 1.35 trillion. If the growth curve on the crypto market continues to point steeply north in the coming weeks, the crypto market could also pass this illustrious group.
On the other hand, there is still room for improvement as far as the spearhead is concerned. First place is occupied by the oil production company Saudi Aramco, whose market capitalization amounts to $1.68 trillion. The crypto market would have to add the Bitcoin market cap on top of that, then the total value of all crypto assets would have won the Champions League in this fictitious calculation example.
…and shows the Netherlands the spurs
The crypto market also does well in a GDP comparison. Among the world’s largest economies, the crypto market would rank 17th, placing itself ahead of the Netherlands with a GDP of $909 billion.
You can see: The crypto economy is taking on an ever-increasing importance and can already compete with the largest companies in the world. Given the current upward trend, more and more players from the traditional financial world are also jumping on the crypto bandwagon. If this trend continues, Bitcoin and Co. are likely to become a fixed portfolio component of all types of investors in the future.