Besides Bitcoin and Ethereum, the remaining eight digital currencies that make up the 10 ten coins on Coingecko contribute more than $30 billion each to the combined crypto market cap.
As aided by Bitcoin, the digital currency industry experienced a massive price rejuvenation in the past week, pushing the combined market cap to $2.6 trillion per data from Coingecko. Volatility has caught up with the broader industry, steering a pushback in the market cap down to its current figure of $2.556 trillion at the time of writing.
While this market cap was contributed by a total of 9820 coins, the bulk of the market cap, amounting to 62.4% was contributed by the duo of Bitcoin (BTC), and Ethereum (ETH). Bitcoin dominates the market with its 45.1% share of the combined crypto market cap, adding a total of more than $610 billion to the industry from January to date. Within that time frame, Bitcoin’s price soared from $29,000 to its current price of $61,147.84, experiencing a number of intermittent corrections along the way.
Ethereum’s contribution cannot also be discounted, as the second-largest digital currency brandishes a 17.3% dominance on the broader market. While the cryptocurrency has grown from $738 to $3,765, a growth rate of 411% in the year-to-date period, its dollar contribution within the past 1 year is just $365 billion, significantly below Bitcoin’s contributions.
Bitcoin and the Crypto Market Cap: Factors that Can Fuel Future Growth
Besides Bitcoin and Ethereum, the remaining eight digital currencies that make up the 10 ten coins on Coingecko contribute more than $30 billion each to the combined crypto market cap. This implies that the growth of these altcoins is essential in pushing the entire industry to new frontiers, and as such, the individual growth and adoption of the fundamentals in each of these protocols can have a tremendous impact on the industry.
Positive regulations bordering on Bitcoin, altcoins, and stablecoins are also very essential in fueling the growth of the industry’s crypto market cap in the near future. While Chinese authorities have made good on their promise to crack down on the industry, banning transactions and mining activities, American lawmakers are reportedly seeking avenues to support the growth of financial innovations that many of these cryptocurrencies represent.
Additionally, the emergence of products like Bitcoin and crypto-backed exchange-traded fund (ETF) products can also accelerate the growth in the industry. While it is true that many countries including Canada, Germany, and Brazil have floated one form of Bitcoin ETF product or the other, the world is waiting on similar products from the United States, a move that can evoke the largest hedge funds in the world to start gaining exposure to the nascent asset class.
Per an earlier Coinspeaker report, there is a huge likelihood for ProShares Bitcoin Futures ETF to begin trading on NYSE Arca this week after being approved by the SEC. The advent of this product is set to change the paradigm in new money flowing into the industry through institutional clients. The expected impact is a corresponding ripple effect that will engulf other digital coins, all in a bid to push the global crypto market cap to heights yet unseen.