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The cryptocurrency market has reached a new milestone; all cryptos' total value now surpasses the value of the US banking system. More than $1 trillion of it belongs to Bitcoin only.
An ‘imperfect’ attempt to measure the current CeFi system's size versus the coming DeFi system, Jim Bianco, President of Bianco Research LLC, which specializes in macro analysis for institutional investors, made this observation as the cryptocurrency market hit $2 trillion for the first time.
While the total market value of cryptocurrencies doubled to $2 trillion in about two months, decentralized finance (DeFi) is still around $108 billion, as per CoinGecko.
Bianco further notes that doubling from here would make crypto larger than US financial companies that involve banks, brokers, insurance, exchanges, asset managers, and others. Another similar uptrend would see the crypto market surpassing all global financial companies' value, he added.
Cryptos are enjoying a bull run amidst the surging institutional demand as top banks BNY Mellon, Goldman Sachs, and Morgan Stanley announced that they are ready to provide their wealthy investors’ exposure to Bitcoin, while PayPal, MasterCard, and Visa have also embraced crypto assets.
The world’s largest digital asset manager, Grayscale, with $34 billion under management, announced on Monday that it plans to convert the trust to an exchange-traded fund (ETF). Furthermore, the largest US crypto exchange Coinbase is ready to have its share start trading from next week.
According to Bianco, the milestone is particularly achieved by the altcoin rally, especially over the last few weeks.
“Momentum and interest have begun to expand beyond bitcoin and ethereum,” said Paolo Ardoino, CTO at crypto exchange Bitfinex and sister company Tether.
“As the industry continues to mature, we expect more blockchain-based applications to be introduced to the world, and coinciding with that, a surge of interest around other alternative assets... as they become more market-ready.”Altcoins’ market cap reached 70% of all cryptocurrencies in 2018, mainly driven by Ether, and is now near a two-year high. As per this, “altcoins are not overdone relative to bitcoin. Or ETH/DeFi has room to go,” said Bianco. [top_coins]