The crypto market has surpassed the US banking system

The market capitalisation of 100 cryptocurrency projects is currently $1 billion or more.  At the beginning of February, it was half that number.

In the traditional market, such projects are called “unicorns”.  They are often privately owned and have strong fundamentals, for which they are valued by the investors who support them.  The world of cryptocurrencies, on the other hand, is open to everyone and is characterised by fast changing preferences.

Decentralised finance (DeFi) and non-fungible tokens (NFT) became the trends of the last period on the wave of new money.

At the same time, the total capitalisation of the cryptocurrency market on Monday for the first time exceeded $2 trillion. This figure beats the section of the S&P Composite 1500, which includes publicly traded US banking organisations.  The analyst associates the latest achievement with the indicators of altcoins, the market share of which has approached a two-year maximum.

The total value of all cryptocurrencies has surpassed the value of the American banking system. 

Why is it important?  

You can call this an imperfect attempt to assess the size of the existing system of centralised finance in relation to the coming system of decentralised.

How did this happen?  

The reason was the rally in altcoins this year, especially in recent weeks.  Altcoins took up 70% of the total space in 2018, mainly driven by ETH.  Then the bubble burst.  This metric suggests that altcoins have not yet reached the limit of growth relative to bitcoin, and ETH / DeFi has room for further growth.

Despite declining dominance, bitcoin itself is now worth more than JPMorgan Chase, Bank of America, and Wells Fargo combined.  For comparison, a year ago, the entire cryptocurrency market was smaller than the largest US bank JPMorgan.  The first cryptocurrency also has its own achievement.  Its capitalisation has been holding above $1 trillion since March 26, that is, for more than ten days.

Another doubling, and cryptocurrencies will become more American financial companies (banks + brokers, insurers, exchanges, financial advisors, asset managers, and so on).  Rise 4 times, and cryptocurrencies will surpass the value of all the world’s financial companies.