Cryptocurrency enthusiasts will have noticed how the total market cap continues to grow. For the first time in history, it surpassed the US$55bn mark. Considering how this cap was just above US$40bn around a month ago, things have certainly changed quite a bit. Even though Bitcoin’s value is still high, it is not the determining factor for this increase either. A lot of other digital assets are gaining traction, yielding some interesting results.
Cryptocurrency Market Cap Keeps Growing
Bitcoin remains the market leader for the time being. With a US$28.88bn market cap, things are looking quite good. Every individual Bitcoin is valued at US$1, 768 at press time. That is a bit lower compared to the value last week, although a correction was to be expected. Digital assets can’t maintain indefinite value increases without some resistance along the way.
However, other digital assets are making some waves too. We now have five different assets with a market cap over US$1bn. That is quite a significant development. It also highlights show cryptocurrency investors diversify their portfolio. NEM Is the latest addition to the US$1bn club, and they may overtake Litecoin in the coming weeks.All of these shows there is room for more than just one digital asset.
Another interesting development comes in the form of Ripple being the number two digital asset by market cap right now. Ripple overtook Ethereum this weekend and has a US$800m lead as of right now. Do keep in mind these valuations tend to change a lot during the day, though. Many people see this as a surprise, although it was only a matter of time. Ripple’s blockchain – and the XRP asset – have real-life use cases. Things are heating up in Japan for Ripple, and a few Asian exchanges enabled XRP trading last week.
Diversification Remains Key
One would expect established digital assets such as Dash or Monero to be above US$1bn in market cap. Oddly enough, that is not the case, nor are they close to changing that. Both assets saw some value gains over the past few weeks. However, their market caps sit at US$630m and US$401.5m respectively. It will take a lot of money to turn them into billion-dollar market caps. Then again, anything can happen in the world of cryptocurrency.
In the end, it is important to remember things are heading in the right direction. More money is coming into the digital asset industry on a daily basis. Diversification of assets is a smart decision for any investor. There are many different offerings out there, each of which has its own appeal and use cases. Do not be blinded by what other people tell you to do, and conduct your own research at all times.