Tag: BNY Mellon

The cryptocurrency market capitalization hit an all-time peak of $2 trillion on Monday, led by gains in Bitcoins, but other crypto assets are catching up fast.

Ethereum, the second-biggest cryptocurrency has gained nearly 190 percent, as against 100 per cent against for Bitcoin.

“We’re now really breaking higher and that will very likely attract buying activity. Ether is gaining in relative strength versus bitcoin,” said Julius de Kempenaer, senior analyst at StockCharts.com.

The digital token for the Ethereum network gained as much as 2.3% to $2,014.

The Ethereum promise

March has a major month for Ethereum, as it reached an all-time high at $46.1 billion in total value locked (TVL) in mid-March.

Visa embraced crypto settlement and chose Ethereum blockchain to conduct them on. Lastly, Ethereum continues to slowly implement changes that will eventually result in its transformation into Ethereum 2.0 — a better, faster, more scalable blockchain, with much cheaper transactions and greater functionalities.

”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.

Yearly performance

Ethereum has gained a whopping 1,272% during financial year 2020-21. From the $130 level, the digital asset has risen to over $1,828, as on March 31. On the other hand, bitcoin delivered a return of over 800%. From the $6,641 level on 1 April 2020, the price of the digital currency zoomed to an all-time high of $61,711.87 during the year.

Historically speaking, crypto industry often performs very well in April and May, so the next two months have an excellent chance of bringing great price performance.

Both Bitcoin and Ethereum 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.

Bitcoin surge

Bitcoin remains strong as it hit its own milestone by holding at a USD 1 trillion market cap for one week. Bitcoin was last up 1.4 percent at USD 59,045. Since hitting a lifetime peak of more than USD 61,000 in mid-March, bitcoin has traded in a relatively narrow range.

Analysts said as long as bitcoin stays above $53,000, it will be able to maintain its $1 trillion market cap. Ethereum, the second-largest cryptocurrency in terms of market cap, was up 1.3 percent at $2,103. Its market cap was $ 244 billion on Monday. It hit a record high of $2,144.99 last Friday.

Blockchain data provider Glassnode, in a research report, said the fact that bitcoin has held the $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 percent of circulating supply transacting above the $1 trillion threshold.

Also on Monday, Grayscale Bitcoin Trust, a $35 billion publicly listed investment vehicle that holds bitcoin, said it remains committed to converting to an exchange-traded fund. In a blog post, Grayscale said the timing of its transition would depend on the regulatory environment.