These lesser-known cryptocurrencies are driving the market to new heights
The continued crypto bull run has pushed the combined value of all major digital currencies beyond $2 trillion for the first time.
According to an index maintained by CoinGecko, which tracks the price of 6,129 distinct coins, the total crypto market capitalization is up 4.5% in the last 24 hours, outstripping the previous all-time high.
The world’s most famous cryptocurrency Bitcoin accounts for 54.18% of the market’s value and is itself now worth more than $1 trillion. However, the most recent bump can be attributed in large part to a group of lesser known cryptocurrencies.
Cryptocurrency market
The arrival at the new $2 trillion milestone comes just three months after the cryptocurrency market capitalization exceeded $1 trillion for the first time, highlighting the industry’s extreme rate of growth.
Although the spectacular rise in the price of Bitcoin is responsible for much of the growth since November last year, the world’s largest cryptocurrency has stalled somewhat in recent weeks.
Instead, a groundswell effect is driving up the price of a number of altcoins, which are said to be responsible for driving the crypto market past this latest landmark valuation.
The cryptocurrency of the Ethereum blockchain, Ether, reached a new all-time high of $2,150 at the end of last week and has recorded a price increase close to 1,200% over the last twelve months.
Other popular altcoins, such as XRP, Stellar and Tron have also registered significant growth over the past few days as enthusiasm for platforms with DeFi and smart contract functionality grows.
As ever, a major market correction remains a possibility, posing a risk for investors unlucky enough to come in at the peak. Given the volatility of cryptocurrencies as an asset class, first-time buyers are advised to only invest as much as they can afford to lose.
