The value of the entire cryptocurrency market has continued its holiday-season surge, breaking through the $800 billion (USD) barrier for the very first time on Sunday. Any sign of a market-wide correction has been absent, for its value has soared to over $830b not even 24 hours later – according to historical data.
This milestone is simply the latest of many celebrated by the global cryptocurrency market, which is now two months deep into a frenzied bout of delirium. On November 7, the crypto market cap had not yet surpassed $200b. Advance to today’s corresponding date, and incredibly, this value has quadrupled – and then some.
Today’s latest eruption in market value was led by established digital coins – such as Ethereum (ETH), Monero (XMR), and Qtum (QTUM) – reaching their respective all-time high prices over the past day’s trading.
Importantly, trading volume in the cryptocurrency market has been rising alongside its soaring market cap. When a financial asset appreciates in value whilst experiencing rising volumes, it indicates a more sustainable demand increase. Over this same two month period, 24-hour trading volume has risen from ~$5.5m to ~$47m (coming off a ~$70m peak just two days ago).
There is no question that market demand is currently sky-rocketing. What ought to be questioned, however, is whether or not this heightened financial interest is deserved. Fuelling the arsenal of crypto pessimists has been instances arising such as TRON (TRX), a protocol that is valued at roughly $11b despite being an abstraction (for now); having produced no product (let alone an alpha version), only this whitepaper.
a currency with a dog on it which hasn’t released a software update in over two years [that] has a [$1.7B+] market cap.”
For now though, the crypto market only knows one direction. Often misunderstood, the market cap (circulating coin supply * price) does not rise exclusively via new money from investors, but also due to factors as basic as market sentiment.