If there is one thing that we have all understood, it is that cryptocurrencies are booming! However, it is not always easy to quantify the extent of the current movement. A look at the total capitalization of the crypto market helps to make it clearer.
The capitalization of a listed company is equal to the sum of shares held by its shareholders. For crypto, it’s more or less the same thing. The overall capitalization of the crypto market is calculated on the amount held by all crypto investors.
With the boom in crypto prices in recent months, the market capitalization has therefore logically increased significantly. According to data from Coinmarketcap, it even recently reached a new record high of around $2.24 trillion. Doesn’t that tell you something? For comparison’s sake, it’s worth noting that with this kind of capitalization, the crypto market just passed the world’s largest company, namely Apple. At the same time, in fact, the capitalization of the American giant amounts to 2.2 trillion dollars.
Other giants like Microsoft, Alphabet (Google), Amazon or even Tesla are now several “billions” behind cryptos! Of course, it is difficult to compare an industry like crypto with a company. For all that, these figures allow us to quantify the exceptional progression of the crypto market in recent months.
The record capitalization of cryptos benefits the entire industry. In what way? By becoming a must-have market, the credibility of cryptos is enhanced with the general public. Moreover, the more significant the market becomes, the harder it will be to stop or to… regulate severely.
It is also interesting to note that the capitalization boom is not simply due to one crypto. Specifically, even though Bitcoin is pulling the market up, it is not solely responsible for the market jump. We are seeing the emergence of other cryptos (altcoins) that are driving investor interest and undermining the dominance of Bitcoin. As well as growing, the crypto market is therefore becoming more robust by being less dependent on Bitcoin.
With the recent IPO of crypto giant Coinbase, there is no doubt that the capitalization of the crypto market will continue its momentum and reach new heights.