NEW YORK: The cryptocurrency market capitalisation hit an all-time peak of US$2 trillion on Monday (Apr 5), according to data and market trackers CoinGecko and Blockfolio, as gains over the last several months attracted demand from both institutional and retail investors.
By mid-afternoon, the crypto market cap was at US$2.02 trillion.
The surge in crypto market cap was led by bitcoin, which hit its own milestone by holding the US$1 trillion market cap for one whole week. Bitcoin was last up 1.4 per cent at US$59,045. Since hitting a lifetime peak of more than US$61,000 in mid-March, bitcoin has since traded in a relatively narrow range.
Analysts said as long as bitcoin stays above US$53,000, it will be able to maintain its US$1 trillion market cap.
Ethereum, the second largest cryptocurrency in terms of market cap, was up 1.3 per cent at US$2,103. Its market cap was US$244 billion on Monday, while hitting a record high of US$2,144.99 last Friday.
"Momentum and interest have begun to expand beyond bitcoin and ethereum," said Paolo Ardoino, chief technology officer, at crypto exchange Bitfinex.
"As the industry continues to mature, we expect more blockchain-based applications to be introduced to the world, and coinciding with that, a surge of interest around other alternative assets ... as they become more market-ready," he added.
Blockchain data provider Glassnode, in a research report, said the fact that bitcoin has held the US$1 trillion market cap for one week is a "strong vote of confidence for bitcoin and the cryptocurrency asset class as a whole."
It added that on-chain activity continues to reinforce bitcoin's robust position, with a volume equivalent to over 10 per cent of circulating supply transacting above the US$1 trillion threshold.
Bitcoin has risen more than 100 per cent this year, while ethereum has gained nearly 190 per cent. Both have massively outperformed traditional asset classes, bolstered by the entry of mainstream companies and large investors into the cryptocurrency world, including Tesla Inc and BNY Mellon.