Live news: Value of global crypto market tops $3tn for first time in 3 years

Value of global crypto market exceeds $3 trillion

The value of the global cryptocurrency market has surpassed $3 trillion for the first time in three years, according to data from CoinMarketCap. The total market capitalization of all cryptocurrencies reached $3.02 trillion on Monday, January 2nd, 2023, marking a significant milestone for the industry.

Crypto market reaches the highest value since 2020

The last time the crypto market reached such a high was in January 2020, when the total market capitalization reached $3.03 trillion. Since then, the market has experienced significant volatility, with prices fluctuating wildly. However, the market has gained momentum in the past few months, led by gains in Bitcoin and Ethereum. Bitcoin, the largest cryptocurrency by market capitalization, has rallied from around $30,000 in July to over $42,000 on Monday. Ethereum, the second-largest cryptocurrency, has also surged in value, from around $1,700 to over $3,000 in recent months.

Several factors contribute to the growth of crypto market

Several factors have contributed to the growth of the crypto market in recent months. One factor is the increasing institutional adoption of cryptocurrencies. Major financial institutions such as PayPal, Square, and Fidelity have begun to offer cryptocurrency services to their customers. This has made it easier for investors to buy and sell cryptocurrencies, which has led to increased demand. Another factor is the growing popularity of decentralized finance (DeFi) applications. DeFi applications allow users to lend, borrow, and trade cryptocurrencies without the need for a traditional financial institution. This has opened up new possibilities for investors and has also contributed to the growth of the market.

Crypto market is still volatile

While the crypto market has reached a significant milestone, it is important to note that the market is still volatile and prices can fluctuate significantly. Investors should only invest in cryptocurrencies that they can afford to lose. Overall, the growth of the crypto market in recent months is a positive sign for the industry. The increasing institutional adoption and the growing popularity of DeFi applications are two key factors that are driving the growth of the market. However, it is important to remember that the market is still volatile and investors should only invest in cryptocurrencies that they can afford to lose.