The total value of the cryptocurrency market passed the $700 billion target on Wednesday to set a new record. According to Coinmarketcap, the record was set around 8.45 AM GMT (3.45 AM ET) on Wednesday and is currently sitting just below at $698 billion.
Market capitalisation is a basic valuation metric that multiplies the value of an asset and the amount of that asset in circulation – in the case of the cryptocurrency market, the value of a coin and the coin supply. Currently, there are almost 1400 different cryptocurrencies on the market.
Mati Greenspan, an analyst at eToro, wrote in his daily crypto roundup on Wednesday:
“There’s a distinct buying sentiment among cryptotraders today. The pre-Christmas sell off seems to be well behind us now. Though Bitcoin is still a bit off her all-time highs some of the alts are generating some serious momentum.”
While the overall value of cryptocurrencies has increased to a new record, the proportion of that value made up by bitcoin is at an all-time low.
Whilst the market cap is setting new records, the Bitcoin dominance is doing the same thing but in the opposite direction, reaching an all-time low.
Frank Chaparro from Business Insider wrote:
“Bitcoin’s market capitalization as a percentage of the total crypto-market hit an all-time low below 36% on Tuesday as smaller so-called alternative cryptocurrencies rallied,”
The cryptocurrency market is catching up with some of the biggest companies in the world, such as Amazon, Facebook or Google currently valued at $572, $527 and $740 billion dollars.
Many financial analysts and investors consider that 2018 is going to be a big year for cryptocurrencies as the market becomes more and more popular and mainstream adoption grows.