Crypto markets have seen recent spikes and increased volatility as more mainstream companies and speculators continue to join the digital asset trading and investment bandwagon. The impressive rise of other cryptocurrencies beside Bitcoin has dented its market dominance.
May 22, 2021 | Wendy Weng- Global cryptocurrency market capitalisation surged amid the strong demand from both institutional and retail investors
- The ranking of top 10 cryptocurrencies has changed constantly
- Cryptocurrency has been increasingly accepted by mainstream financial industry
The global cryptocurrency market capitalisation quadrupled in 2020 and soared by 172% from $0.78 trillion at the end of 2020 to $2.12 trillion on 19 May 2021, on the back of strong market sentiment. Demands from both institutional and retail investors have surged and an increasing number of institutions have entered the crypto market.
Cryptocurrency has become more mainstream despite the high volatility and warnings on cryptocurrency risks. The direct listing of cryptocurrency exchange Coinbase in April 2021 marked the broader acceptance of cryptocurrency by mainstream financial industry and fuelled the continued rally behind it.
The recent volatility in cryptocurrency prices has been largely triggered by Tesla's announcement on 12 May that it would suspend accepting Bitcoin as payment for its vehicles due to concerns over energy consumption. The electric vehicle company began accepting payments in Bitcoin in March. Meanwhile, three Chinese state-backed financial associations issued a joint statement reiterating that financial institutions and payment companies are not allowed to provide cryptocurrency services on 18 May. Consequently, the value of the cryptocurrency market tumbled 18% from the record high of $2.59 trillion on 12 May to $2.12 trillion on 19 May.
Top cryptocurrencies
Among more than 7,300 cryptocurrencies tracked by CoinGecko, there were 18 cryptocurrencies with market capitalisation of over $10 billion on 19 May 2021, compared to four at the end of 2020. The 10 largest cryptocurrencies in terms of market capitalisation...
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Keywords:Cryptocurrency, Digital Asset, Crypto Payments, Blockchain, Decentralised Finance, Cashless
