After a staggering growth in the four months of 2021, May and June have been pretty dynamic for the global crypto market. First, the regulatory concerns in China and Elon Musk’s announcement about not allowing Bitcoin transactions for Tesla crashed the crypto market in May. Then, in June, cryptocurrencies plummeted again after the US Department of Justice seized $2.3 million in crypto coins paid to the ransomware extortionists Darkside, which had targeted Colonial Pipeline.
Nevertheless, the world’s largest crypto coins still grew their market cap significantly compared to January figures.
According to data presented by Block Arabia, the combined market capitalization of Bitcoin, Ethereum, and Tether, as the top three cryptocurrencies, amounted to over $1trn last week, a $396bn increase since the beginning of the year.
Bitcoin’s Market Cap Grew by 30% Since January
After a fantastic performance throughout 2020, the world’s leading cryptocurrencies exploded in 2021, causing the global crypto market cap to hit a new record high. In the first week of May, the combined value of all crypto coins hit $2.43trn, a massive 220% increase YoY.
Bitcoin, the biggest digital currency, accounted for 45% of that value. The CoinMarketCap data show its price rallied over 100% in five months of 2021, helping its market cap hit $1.1trn at the beginning of May.
However, by the end of last month, the flagship cryptocurrency fell to more than three-month lows, dropping to about $30,000 at one point.
The unexpected pullback in Bitcoin and other cryptocurrencies came as a flurry of negative headlines and catalysts, from Tesla CEO Elon Musk to a new round of regulations by the Chinese government, causing a massive hit for the entire sector characterized by extreme volatility since it was created.
Statistics show that Bitcoin’s market cap dropped by around 30% in the last month reaching $705bn last week. However, this still represents a 30% increase since the beginning of the year.
Ethereum Market Cap Soared by 225% in Six Months
The latest boost in the crypto market has been equally driven by impressive Ethereum growth. After an outstanding performance throughout the last year, Ethereum’s market cap surged by 425% in the five months of 2021, rising from $83.9bn in January to $442bn in May.
After the crypto price crash, Ethereum’s market cap almost halved in just three weeks, falling to $222bn in the third week of May. However, the CoinMarket cap data this figure rose to $273bn last week. Although significantly lower than an all-time high from last month, this still represents an impressive 225% increase since the beginning of the year.
Statistics also show that Ethereum’s daily trading volume more than doubled in the last year, rising from $6.7bn to $18.7bn.
As the world’s third-largest cryptocurrency, Tether’s market cap hit $62.6bn in market cap last week, compared to $21.3bn in January.