Is the crypto market growing?
Is the crypto market growing? Definitely. We have seen the success stories and lots of added utilities in the year 2021. NFTs and crypto assets made big waves and the market happily grew. Market was volatile too, however overall the crypto market is growing. Let us take a look at the crypto market from the beginning
Launch of the first crypto assets & its market
The great recession hit the economy in 2008 and a group of people devised a plan to beat inflation. There was lot of distrust also in the traditional financial system therefore they (Satoshi Nakamoto) wrote a white paper focussing on the decentralized control and trustworthy system in place.
Year 2009 saw the launch of Bitcoin. And as the saying goes the rest is history!
Genesis Block is the term given to the first block of Bitcoin mined in 2009. Bitcoins were awarded only as reward for mining. Much later people started trading them at market value. Initially Bitcoin had no real value and only enthusiasts trade it just for fun. However much changed after a man traded 10000 Bitcoins for two pizzas. This started a new era with the real-world price valuation of Bitcoin.
With the rise of Ethereum and other crypto assets, real-life applications and adaptions took place thereby raising the value of crypto currencies. The first crypto market exchange came into existence in 2010.
Market Cap of a Crypto asset
The price of a crypto asset depends upon its supply and demand. The simple rule of economics also applies here – the higher the demand and lesser supply – high price.
Popularity plays a very important role in increasing demand. Almost all of the crypto assets have limited supply. Owing to popularity and supply cap, prices rise.
Market cap of a crypto asset is the total value of all the coins in circulation. To calculate market cap simply – Multiply the number of coins with the current value of a single coin.
For more details on Market cap read our blog.
Is the Crypto market growing?
In July 2010 the price of Bitcoin jumped to $.09 and after that, within three months it gained massive 2960% and reached to the value of $29. Year 2010 saw the launch of Ethereum with many more getting ready to jump. And the market was showing bullish trend.
In 2015 Bitcoin reached the highest market price at $19345. This massive return gained attention from all over the world and more investors jumped on the bandwagon.
The recent pandemic again caused the price hike of crypto assets and 2021 was declared the crypto year.
The total market cap of all the crypto assets reached a record high $1.5 Trillion in 2021. However, the prices came down in 2022 and markets were a lot volatile. Still the crypto assets are now showing signs of growth again.
Conclusion
We have reached from zero to a trillion dollars’ market cap in only one decade. There were only a handful of crypto assets in early 2010’s however there are more than 2000 crypto assets being traded right now.
Many new changes are coming in the market with value added utilities. Technology is developing fast. World is waiting for the advancements such as Web 3 and Metaverse. All this would lead to more growth of the crypto assets.
Are you thinking of investing in crypto assets? Read this.
