Bitcoin rally helps crypto market cap soar past $2 trillion

Strong performances from bitcoin and ethereum have taken the market capitalisation of cryptocurrencies above $2tn for the first-time ever.

Ethereum has hit an all-time high of $2,151.25 during the last 24 hours according to website Coindesk.

Ethereum was trading at $2,091 at 9.45am on 6 April, and was up 3.2% over the previous 24-hour period according to Coindesk.

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The crypto’s value has rocketed this year, growing 189% from $730 on 1 January.

Ethereum’s recent rally means that it has a market capitalisation of $242.67bn, according to website Coingecko.

Bitcoin remains the crypto with the largest market capitalisation, valued at $1.1tn, with ethereum coming in second. Bitcoin has been boosted this year by increased interest from institutional investors and the backing of large companies such as Tesla and Square, while ethereum meanwhile is closely connected to the hype around non-fungible tokens or NFTs.

Bitcoin was trading at $58,588 at 9.45am GMT on 6 April.

The crypto’s explosive growth in the past year has fuelled much of the growth in the market capitalisation of cryptocurrencies as a whole.

Last month bitcoin hit an all-time high of $61,556, according to Coindesk, and is up more than 100% for the year-to-date.

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NFTs are one-of-a-kind digital collectibles that are authenticated using blockchain technology and purchased using cryptocurrencies, with the most popular choice being ether.

The NFT acts as virtual proof of ownership, with the value being placed on the scarcity of that ownership.

On 1 April, NFT Investments said it is aiming to raise £10m in a float on London’s Aquis Exchange to invest in NFTs and blockchain technology.

“NFTs represent the future of collectibles and expect to see mainstream investing in this space gather pace,” Jonathan Bixby, executive chairman of NFT Investments said.

To contact the author of this story with feedback or news, email James Booth