It’s an exciting time in the crypto world as prices are finally picking up, bitcoin has crossed $5000 after a long time and ethereum has breached the $150 mark. But something most people are missing out is the rise in market capitalization which reached $185 billion on April 8th. Market cap is more important than the actual price as it gives a more realistic idea of what the actual health of the asset is. This is because the price per unit fails to capture the total volume, for example, if a company has 100 shares worth 10 dollars, its value is 1000 dollars. But if a company has 100000 shares each worth just 2 dollars, its value is 200000 dollars.
Price rally
This market capitalization is a 5 month high and at the current projection of prices, it is expected to increase further. Most of the upward price gain was experienced between April 1st and April 7th. During that period, Ethereum gained more than 30 dollars and Bitcoin gained more than 1000 dollars. This kind of price change has not been witnessed in the market except during the ICO craze of late 2017 and early 2018, some are worried about renewed volatility in the crypto. This is something many analysts disagree as they believe that speculators have largely left the market hence a quick sell-off is unlikely
Rise of the Altcoins
Another interesting fact about the recent rally is that it is the altcoins has experienced the most gain in market capitalization like Tron’s (TRX) market cap rising more than $350 million, and Stellar (XLM) rose by $400million along with Verge (XVG) which rose by $50 million. Bitcoin which until now held 52 percent of the total market cap of crypto currently only holds 50.6 percent, this further shows how there is a greater flow of capital towards altcoins.
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