Contraction of Total Cryptocurrency Market Cap May Be Inevitable Towards End of 2017

Contraction of Total Cryptocurrency Market Cap May Be Inevitable

The total market capitalization of all cryptocurrency markets has exceeded $100 billion USD following bitcoin’s recent establishment of new all-time price highs, in tandem with dramatic value increases in most altcoins.

Also Read: Bitcoin Markets Increasingly Reflect Global Transition Towards ‘The Asian Century’

The Total Cryptocurrency Market Capitalization Has Now Surpassed Major Companies Such As Ford And Delta Airlines.

The milestone of the cryptocurrency markets attaining $100 billion status has been largely attributed to bitcoin’s impressive growth in Asia during recent months, with bitcoin’s market cap representing approximately 45% of the total cryptocurrency markets. Since the beginning of 2017 the price of a single bitcoin has tripled, creating an all-time high of over $2900USD on Bitstamp.

Over the last 7 years Bitcoin’s price has grown by an average of 0.3% daily, culminating in Bitcoin’s current market cap of over $45bnUSD, renders the digital currency of comparable size to Tesla – who currently boast a $50bnUSD market cap. With Bitcoin steadily continuing to absorb capital from new markets, this trend may continue to hold up over the longer term. New investors should exercise caution in interpreting these facts as evidence of Bitcoin’s inevitable unending price ascension, as the price of a single bitcoin has gone up over 1000% since 2015.

Contraction of Total Cryptocurrency Market Cap May Be Inevitable Towards End of 2017

Entering the 12-digit club ranks the cryptocurrency ecosystem alongside major banks such as Commonwealth Bank of Australia ($105bnUSD market cap), Royal Bank of Canada ($100bnUSD market cap), and puts the cryptocurrency ecosystem of comparable size to McDonalds US – who currently have a total market cap of approximately $125bnUSD. The total cryptocurrency market capitalization has now surpassed major companies such as Ford and Delta Airlines.

A Contraction In The Share Of The Total Market Cap Represented By Altcoins May Be Inevitable

Although market sentiment across the altcoin markets currently comprises euphoric bullishness, many speculators are preparing for the party to soon come to an end. The extreme percentage gains seen by many altcoins are very likely to be unsustainable long-term, suggesting that a contraction in the share of the total cryptocurrency market cap represented by altcoins may be inevitable. If so, the only question is: when?

Contraction of Total Cryptocurrency Market Cap May Be Inevitable Towards End of 2017Despite the intensity of the current cryptocurrency bubble, a recent resurgence in Chinese trading volume following a return to normal operations regarding fiat deposits and withdrawals may drive further growth in the total market capitalization of cryptocurrencies in the immediate future.

Will altcoins be able to retain over a 50% share in total cryptocurrency market capitalization? Or will Bitcoin again comprise over half of the total cryptocurrency ecosystem? Share your thoughts below!

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Samuel Haig is a cryptocurrency and economics journalist who has been passionately involved in the bitcoin space since 2012. Samuel's principle areas of interest are the antagonism between decentralization and the revolutionary effect of cryptocurrency upon the dialectical relations within society.
  • gotroch

    Difficult to say….

  • Only the time will tell, very hard to predict.

  • Reid Harrison

    There will definitely be corrections on the ride up. Just like when we went over $90bln a few weeks ago and corrected back to the $70s before climing back up over $102 then coming back down to the high $90s again. In my personal opinion, $100bln is going to seem small in the long run. We are talking about a universal and global phenomenon that puts honest money and technology in the hands and at the fingertips of real people, not centralized institutions. Afterall, Amazon and Apple are over $400bln. Cryptos are a small fraction of their true potential as more and more people turn to them. It will be a bumpy ride to the top, though, there is no doubt about that, and not all cryptos will hang on to the end.

  • Leonidas

    The market cap of “all” Cryptocurrencies is completely irrelevant. Most of those coins will not survive.I get so sick of these ignorant and ridiculous prognostications. They are pointless. Aside from proving the autor’s utter ignorance. You’re trying to analyze something that has no history or data base to try and draw conclusions from. It’s uncharted waters. So ALL your charts are useless.

    • sjs

      Yes but the genius is now ‘working on a thesis’. God help us.

  • Blake Lucas

    As Ethereum is considered an Altcoin, then I’d say it’s very likely that Altcoins will continue to hold more than 50% of the market cap. IMO, there’s a decent chance that Ethereum’s market cap catches up with Bitcoin in the coming year or two.

  • sjs

    Ford and Delta airlines, great examples, both beneficiaries of government bailout’s. Hope you do better in your thesis.

    Crypto currencies stand on their own merit or they fail and they WON’T.

  • Владислав Тылибцев

    We have already seen so-called “contractions” in cryptocoins cap but overall trend is up because of the expanding market and all the experts will have to admit that.

  • Market Capitalization will grow and isn’t it wonderful! MCap means price stability in the long run as a current MCap is a collection of offers on a traders floor reflected by the current price for one traded unit. It can be effectively used against the Stock Markets for evaluation and currently the tools to track MCap are the same and in most cases is the same software and tracking network. If it was not a Trusted tool or tracking, please tell me why Deloitte and Price Waterhouse Coopers along with Credit Suisse are in and developing tools for their investors? Watch where the exchanges go and who will back the buying and partnering of the exchanges. Consolidation is soon to happen with large volume trading sustaining. That is not a correction, it will be a boom.