The world of cryptocurrency has taken the world by storm as of late, as nearly everyone who had previously shunned the idea of investing in crypto is now looking at the industry with renewed focus and perspective. This makes sense, too, as many believe that cryptocurrency is the next evolutionary step in finance and trading. Moreover, both Bitcoin and Ethereum have experienced spikes in their price and lead the pack in terms of market capitalization and have thus become a popular choice for investors in terms of trading as well as having long term investments, savings and a source of passive income.
However, the cryptocurrency industry had reached yet another huge milestone when it managed to surpass the value of the publicly traded banks in the United States. This is of the utmost significance as this moment highlights the long-awaited moment when cryptocurrencies would finally find themselves in the position where the industry can become a serious competitor to the banks.
Total market capitalization goes beyond $2 trillion
The overall crypto market has now surpassed the S&P Composite 1,500 Banks Index in terms of the total value. The index is used to monitor the performance of various banking institutions (the ones that are publicly traded) within the United States.
With this in mind, the collective market capitalization of all of the cryptocurrencies surpassed the amount of $2 trillion just yesterday. This is the first time that this has ever happened, and it is thus a huge milestone achieved by an industry that many were hesitant to believe in at its inception.
Altcoins massively contributed to the success
Bianco Research’s Jim Bianco had stated that the success of the altcoins was also a significant factor in the aforementioned success of cryptocurrencies. The altcoins’ market share has come close to its 2-year high as of late as part of the ongoing rally. Jim firmly believes that there is much more room to run regardless of the massive gains experienced.
Altcoins, especially Ethereum, had a boom period in 2018 before the bubble had eventually popped. Now there is a resurgence of sorts as Ethereum recently reached an all-time high of over $2,000. Furthermore, altcoins are not necessarily overdone in relation to Bitcoin either, and the ETH/DeFi pair certainly can improve.
Nevertheless, Bitcoin remains both the leader and most dominant cryptocurrency to date and has a current price of nearly $58,600 as of the time of this writing. Today, Bitcoin by itself is worth more than the Bank of America, Wells Fargo and JPMorgan Chase combined.
Lastly, in terms of future predictions, Jim stated that the overall crypto market capitalization would have to quadruple in order to truly eclipse every financial company on the planet, and years down the line, this may certainly be a realistic possibility, though time will only tell how that goes.