On Jan. 3, 2021, the cumulative market capitalization of all cryptos ballooned to a whopping $913 billion, a new all-time high.
For the first time in nearly three years, the crypto asset class came close to a $1 trillion valuation or higher. The previous record for the cryptocurrency market’s total valuation was achieved towards the beginning of 2018.
Topping at approximately $830 billion back then, the asset class didn’t get a chance to cross the benchmark before undergoing a massive correction between 2018 and 2020. A strong recent resurgence, however, has paved the way for the crypto market to finally realize a valuation of $1 trillion.
Bitcoin Now the World’s Ninth Most Valuable Traded Asset
According to AssetDash, a website ranking the world’s tradable assets by market capitalization, Bitcoin is currently the ninth most valuable asset in the world.
The cryptocurrency recently entered the top 10, surpassing Berkshire Hathaway and Taiwan Semiconductor Manufacturing (TSMC) only a few days ago. At around $600 billion, Bitcoin is now a stone’s throw away from overtaking even Tesla and Alibaba.
Notably, Berkshire Hathaway is led by Warren Buffett — a famed investor that dismissed Bitcoin and the cryptocurrency market on several occasions. In one instance, as recently as 2018, the American business tycoon went so far as to call the digital asset ‘rat poison squared.’
Top Crypto Assets Single-Handedly Pushing the Total Market Cap?
Another metric that has rallied during this bull run is Bitcoin’s dominance relative to other digital tokens. Responsible for roughly 68% of the total crypto market cap, Bitcoin stands tall above its compatriots. This figure represents a three year high for the digital token, which lost a significant chunk of its market share in 2017.
Even though Bitcoin comfortably accounted for the lion’s share of the total market cap for close to a decade, the proliferation of ICOs and new cryptocurrencies during the previous bull run diluted its dominance. This metric dropped from the high-80% range in early 2017 to a paltry 33% by Jan. of 2018, according to data from CoinMarketCap.
It’s worth noting, though, that a lot has changed since the last bull run. For one, the investor mania surrounding Initial Coin Offerings has all but disappeared, causing even existing altcoin valuations to stagnate.
The amount of institutional money flowing into the market has also skyrocketed. Consequently, Bitcoin’s low supply and high demand are evidently pushing its value far higher than most of its competition.
Beyond a Trillion-Dollar Valuation
In 2021 then, a skyrocketing Bitcoin may be poised to propel the market beyond the long sought-after trillion-dollar benchmark.
If Bitcoin’s historic bull run continues through the remainder of 2021, onlookers will likely witness not only a flourishing cryptocurrency market but also a Bitcoin valuation that exceeds $1 trillion.
At that point, the next goal to beat will likely be the combined value of the world’s gold reserves — worth between $9 and 10 trillion.
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