What is the capitalization of cryptocurrencies: ups, downs, analytics
What is the capitalization of cryptocurrencies in the context of recent world events and changes in the market. What affects the value of digital gold, and what can really compete with bitcoin?
What is the capitalization of cryptocurrencies, and what can this information give? First of all, we are talking about the current value, on which the profit of investors directly depends. This financial indicator can be compared with the dollar. In the same way, it grows, falls, grows again and is constantly under the close supervision of investors and entrepreneurs.
What is the capitalization of cryptocurrencies on the example of one calendar year
More and more eminent investors are appearing on the cryptocurrency market, such as Elon Musk’s Tesla Motors. In 2020 alone, the company bought $1.5 billion worth of bitcoins. Was implemented the possibility of buying cars for BTC. Venture capital has entered the digital currency market. First of all, new promising projects are financed – blockchain startups.
The state of El Salvador legalized coins in June 2021. As a result, the liquidity of digital gold has increased dramatically, the level of corporate confidence has increased. There are funds where you can directly invest in digital assets.
This led to the fact that at the beginning of April 2021, the capitalization of cryptocurrencies reached a record high of more than $2 trillion. After China introduced multiple restrictions on cryptocurrency, after about 1.5 months, in mid-May 2021, the capitalization level fell by almost 2 times. But already in November of the same year, a new record was set – over 3 billion dollars. Ultimately, the increase in one year was $1.5 billion.
Who is after Bitcoin in terms of capitalization?
In 2021, for the first time ever, the increase in capitalization was not due to the rise in the price of bitcoin, but due to the growth of all cryptocurrencies in the aggregate. In particular, Ethereum is rapidly gaining momentum, the capitalization of which in 2021 amounted to $475 billion.
2022 did not start off well for the crypto market. Due to the crisis and protests in Kazakhstan, the price of the same bitcoin began to decline.
First of all, this happened because 18% of the world’s cryptocurrency mining capacities are located in the Republic of Kazakhstan. For the same reason, bitcoin’s market share has fallen from 70% to 40%, while Ethereum’s share has risen from 11% to 20%.
Is it possible to predict the value of cryptocurrencies?
Financial indicators fluctuate unpredictably and depend on a large number of external factors. To have a vision in this area, you need to spend a lot of time every day on the analytics of world news. It is important to understand which fluctuations are worth close attention, and which are not