Cryptocurrency Market Value Tops $2 Trillion for the First Time as Ethereum Hits Record High
The stability in Bitcoin and new records on Ethereum are the most important elements of the increase in volume.
The fact that Bitcoin, which is the determinant of the cryptocurrency market, broke a record after a record at the beginning of the year and reached 60 thousand dollars supported the volatility in the market and reflected positively on the market volume. Parallel to the increase in crypto money transactions during the pandemic period, the total market volume reached $ 2 trillion for the first time in its history on Monday, according to crypto money data platforms CoinGecko and Blockfolio.
On the other hand, Ethereum, the second-largest cryptocurrency in the market with a total market volume of $ 237 billion, broke its new record last week with $ 2,152. According to analysts, these developments point to an interest in other cryptocurrencies and Bitcoin in the market. However, regulatory uncertainty continues to pose risks for the future of the industry.
According to Statista, the total number of cryptocurrency wallets increased from 47.12 million in March 2020 to 70 million in March this year. Exchange markets, including Binance, Bitpanda, and Coinbase, also supported individual cryptocurrency investment. Parallel to this, Coinbase announced that it reached 56 million new users in the first quarter of 2021. The company’s turnover and profit reached $ 1.8 billion and $ 730.8 million, respectively, during this period.
The said activity in Bitcoin and Ethereum points to the acceleration of cryptocurrency adaptation in the traditional economy. CoinShares, the digital money management platform, saw a record high of $ 4.5 billion in cryptocurrency funds in the first quarter of the year. In the same period last year, this figure was 3.9 billion dollars. In the first quarter of the year, the most money inflow was made to Bitcoin with $ 3.5 billion, followed by Ethereum with $ 765 million. The moves of big Wall Street players such as Tesla, who bought $ 1 billion worth of Bitcoin, were effective.
Scenarios for the future of Ethereum, which broke its new record with $ 2,152 on Friday, are uncertain. Speaking to The Independent, payment network, Mercury co-founder Greg Waisman thinks the increase in Ethereum is due to Visa’s allowing cryptocurrency transactions on its platform. According to Waisman, the famous investor Mark Cuban’s definition of Ethereum as the closest crypto to a “real currency” also increased. On the other hand, Ethereum could break a new record at $ 2,500 if traders continue to trade above the $ 2,350 level of the Momentum Reversal Indicator (MRI), which predicts current trends based on price movements, according to FX Street analyst Akash Girimath.