The Cryptocurrency Mania Will Expand Further

The consolidated value of cryptocurrencies has recently crossed the $750 billion mark. Bitcoin, the most popular among cryptocurrencies, accounts for almost 40% the total market capitalization of crypto markets. Market capitalization is always considered as a major valuation metric that multiplies the value of an asset by the value of that security in movement. As shown in the above chart, the Crypto market capitalization has been increasing a rapid rate over the last eight months, thanks to a surprise growth in bitcoin and other cryptocurrencies. After a long rally, Cryptocurrencies struggled last week and dipped sharply, amid investors strategy to capitalize on gains and concerns over the bust of the crypto bubble. Bitcoin declined almost $8,000 during the Christmas week.    Mati Greenspan, an analyst at eToro said, “The crypto selloff that started pre-Christmas ended and the bitcoin is again moving higher”.   Bitcoin soared almost 12.36% in Friday’s trade to the level of $16,784,050, but the coin is still significantly down from all times high of $19843.10.   The latest rally in bitcoin was the outcome of the report that tech billionaire Peter Thiel has made hundreds of millions of dollars from investment in bitcoin On the other hand, several crypto investors have been avoiding investing in bitcoin, and they are favoring Ripple and ethereum that are contesting to hold the second place in terms of market capitalization. Although ripple declined sharply in today’s trade, it holds the second place with $1.21 billion in market capitalization after the bitcoin.   Mark Zuckerberg, the CEO of Facebook, also plans to study cryptocurrencies, as he wants to decentralize his operations. He said, "There are important counter-trends to this – like encryption and cryptocurrency – that take power from centralized systems and put it back into people's hands”.   Moreover, the instant growth in Dogecoin’s valuations also suggests that there are more signs of the cryptocurrency boom. Overall, cryptocurrencies are gaining momentum with few shortfalls, thanks to its decentralized structure. Crypto’s potential to make more secure and faster transaction will continue to fuel excitement among investors.   Featured Image: twitter

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