The value of the cryptocurrency market has surpassed $2 trillion U.S. for the first time driven by a rally in digital coin Ethereum (Ether).
In just over two months, the market capitalization of the cryptocurrency market has doubled from $1 trillion U.S. to $2 trillion U.S., according to price tracking website CoinGecko.
Bitcoin, the largest and best-known digital currency, accounts for over 50% of the entire cryptocurrency market capitalization. Bitcoin has rallied more than 100% year-to-date and that has driven the cryptocurrency market to new heights.
In March, Bitcoin hit a record high of $61,000. The digital coin was trading at about $59,000 to start April.
However, the latest boost in the cryptocurrency market has come from Ether, the second-largest digital coin. There is growing excitement about the use of Ether in so-called “decentralized finance,” or DeFi, applications. These are blockchain-based financial services, such as lending, that could bypass traditional banks and brokerages. Users of DeFi apps can conduct financial transactions using the Ether cryptocurrency.
Ether also has the underlying technology behind the recent craze in non-fungible tokens (NFTs), a new type of digital asset. Ether has hit an all-time high of $2,151.25, according to CoinDesk, and is up 180% year-to-date.
Ether is also seeing corporate interest. Chinese app maker Meitu bought $22.1 million U.S. worth of Ether in March, making it one of the first major companies to do so.