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CRYPTOCURRENCY

Cryptocurrency Value Tops $2 Trillion for First Time As Ethereum Hits Record High

Cryptocurrency Value Tops $2 Trillion for First Time As Ethereum Hits Record High
The Siliconreview
06 April, 2021

Cryptocurrency's value has surged $2 trillion for the first time on Monday; it is driven by a rally in the ether, the second-largest digital coin. In just over two months, the market capitalization of the digital currency has doubled. Bitcoin, the most prominent digital currency, accounts for over 50 percent of the entire cryptocurrency market capitalization. Bitcoin has rallied over 100 percent this alone, and it has helped drive the cryptocurrency market value higher.

In March, Bitcoin hit a record high of above $61,000. The other digital currencies were trading at about $58,800. The latest boost in the cryptocurrency market has been driven by ether, the digital coin that powers the Ethereum blockchain. Bitcoin also runs on a technology called blockchain, a public ledger of activity.

The blockchain makes cryptocurrency transactions transparent. In comparison, Ethereum is more like a software platform that builds apps on top of it. Users can then spend their ether currency on these apps. There is growing excitement about the use of Ethereum in decentralized finance or DeFi applications. The digital currency is also seeing interest among companies like Tesla, Meitu, Square, and more.