For the first time since May, the market capitalization of cryptocurrency has surpassed $2 trillion.
As Ether increases and altcoins gain traction, Bitcoin’s dominance is eroding once more.
On Wednesday, the total value of all cryptocurrencies in circulation — a key indicator of the overall market’s health — surpassed $2 trillion for the first time in almost three months, providing solid evidence that buyers are regaining control.
According to Coingecko data, digital asset values crested at $2.007 trillion on Wednesday, based on market capitalization.
The digital asset class has gained 4.6 percent in the last 24 hours.The market has gained 25%, or $400 billion, in the last week.
The largest and most prominent cryptocurrency, Bitcoin (BTC), represented for 43.7 percent of the total market.
Meanwhile, Ethereum (ETH) accounted for 18.9% of the market.
According to TradingView, Bitcoin was up 3.3 percent to $46,343 while Ether was up 5.2 percent to $3,240 at the time of writing.
The cryptocurrency market peaked at $1 trillion in January, before more than tripling three months later.
On May 11, asset prices reached a high of $2.6 trillion before a dramatic decline effectively reduced the total market capitalization.
The comeback of crypto is being aided by a confluence of forces.
The increase has been fueled by institutional buying, steady accumulation by ordinary investors, and billions in venture capital funding for crypto and blockchain businesses.
Bitcoin’s surge has been mostly attributed to supply-squeeze undertones, which appears to have prepared the door for altcoins to reclaim their supremacy.
Despite some alarming regulatory developments in the United States, crypto markets have maintained their optimistic leaning.
President Biden’s infrastructure bill recently cleared the Senate without the much-needed clarity on what defines a bitcoin broker.
Many in the crypto sector feel that the version that passed the Senate earlier this week will impose unworkable tax reporting requirements on protocol developers.
The bill is unlikely to reach the House of Representatives until later this year.
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