The previous week has been an excellent one for the cryptocurrencies such as Bitcoin and other altcoins as once again, they rallied past the point and together they pushed the global market capitalization of cryptocurrencies way above two trillion dollars point.
According to Coingecko, the largest independent cryptocurrency data aggregator in the whole world, at the time of publishing the news just a few hours back, the total market capitalization of cryptocurrencies was standing at a whopping $ 2.05 trillion, which according to data has been observed that it went up by almost 1.5 percent only in the recent 24 hours. The most dominant cryptocurrency in the world, Bitcoin, went high by more than 42.2 percent. On the other hand, the second-biggest cryptocurrency by market cap, Ethereum dominated with a percentage of 18.3.
The recent upsurge in the cryptocurrency market capitalization which took the market by storm is believed to be caused by a combination of certain factors. However, one of the key factors because of which this upsurge had taken place was the sudden hike in prices of some of the digital assets.
Bitcoin and Ethereum being the most popular of the cryptocurrencies have made incredible developments over the last week and there is no amount of doubt regarding that fact. However, apart from these two well-known cryptocurrencies, there are several other cryptocurrencies that are quite popular. Even though they are at their nascent stage, they do convey promising aspects. Digital assets such as Solana (SOL), Ripple (XRP), Cardano (ADA), and Terra (LUNA) are such coming of age cryptocurrencies that have recorded mammoth growth over the span of the last seven days.
As we all know, Bitcoin has been going through a period of a downward trend for the past few months leading investors and experts to guess and making predictive analyses about how the coin would make a comeback. However over the course of the previous week, much to the relief of experts and investors, the cryptocurrency has shot up to a price as high as $ 48,152, which is the highest level reached by the crypto since the month of May, when the crypto started to fall gradually. Bitcoin literally showed that it can sustain a resistance power of above its moving average of 200 days.
Other tokens also performed really well, almost surpassing the expectations of many experts, critics, and investors alike. Cryptocurrencies such as Solana (SOL), Cardano (ADA), and Ripple (XRP) were up by almost 78 percent, 47 percent, and 57 percent respectively. These are relatively newer cryptos in the market and nobody was expecting them to do so well.
It is worth mentioning that the market cap for the crypto industry had reached the $2 trillion mark this year back in the month of May on the 17th. After a period of slight turmoil in the past couple of months, the market cap has again hit the $2 trillion mark. Earlier in 2021, around the month of May, the market cap had reached a peak of $2.5 trillion but the following two months were not so lucky, as the downward trend had seen the crypto market cap touch as low as $1.19 trillion as well, on the 20th of July. However, things are looking far better now and the investors are gearing up for another bull run.
The Crypto market is still facing challenges
Even though the crypto market is steadily regaining momentum as the market is surging once again, it is important to note that there are still plenty of challenges and hurdles that the industry is facing, especially in relation to the infrastructure bill of the United States and the crackdowns that are taking place over crypto mining issues, song various other issues.
Quite recently, the cryptocurrency ecosystem suffered a temporary defeat when it failed to transform the tax reporting rules in the United States in respect to rules of making payments through digital currency or any such digital assets. On the other hand, China along with some other countries has been maintaining an intensified approach towards cryptocurrency mining and in turn the miners as well, citing environmental concerns. The Sichuan province in China which is mainly rich in hydropower ruled out the mining of cryptocurrencies forcing the miners to flee elsewhere. Even Beijing ordered a clampdown on miners citing concerns regarding the environment.