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  • Jacob Rogers
  • Posted Articles: 7
  • Last Posted: 2017-06-08 11:09:23
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Market Capitalization of Digital Currencies Touches $30 Bill

2017-06-08 11:09:23

Recently, the market capitalization of virtual currencies has touched the $30 billion mark. The industry is seeing a significant turnaround these days. Therefore, this milestone presents new opportunities and signifies cryptocurrencies are growing swiftly. The growth pace is escalating as well. Analysts are assimilating this growth to the first run-up in virtual currency prices seen in 2013. Although this is somewhat considered a bubble, there is a basis for believing that cryptocurrencies are heading to a much formidable ground.

Let’s look at the cryptocurrency market this year. Arguably, bitcoin is no longer the most powerful digital currency in the market. Here’s why: although it has gained traction and it holds around 70% of the total market value, more rooms are given for its counterparts such as Dash and Ethereum and Monero. So far, these virtual currencies were able to surpass bitcoin this 2017.

According to analysts, certain virtual currencies are poised to falter in the long run. But the strength coming from the market when the product offerings are more diverse is the key to attaining and maintaining the overall health of such currencies as a class. It also makes sense to increase the number of exchange operators which offer various cryptocurrencies. This means digital wallet holders will no longer be too reliant on a single service provider. Also, the decentralization appears to have been advantageous to the systemic threats that holders deal with.

Now, what do cryptocurrencies can expect in the future, specifically in its market cap?

Erik Voorhees, Chief Executive of Shapeshift, a cryptocurrency conversion company, said he is anticipating the market cap to reach $300 billion in four years. Several investors are referring to numerous currencies and products as the next big star. However, the notion that there will be a next big start is normally considered as a given.

Despite the scandals and illicit activities that greatly affected cryptocurrencies, it is safe to presume its market cap can exceed the projected $300 billion in the future. Signs are showing it.