Ethereum Surges to New Heights as Global Cryptocurrency Market Capitalisation Reaches Record $1.34 Trillion
The cryptocurrency market witnessed a significant surge on Thursday, with Ethereum (ETH-USD) leading the gains, posting an impressive 6% increase, while Bitcoin (BTC-USD) saw a modest rise of 1.5%. The global cryptocurrency market capitalisation reached a record high of $1.34 trillion (£1.06 trillion), according to CoinGeckodata.
Ethereum Outperforms Bitcoin in the Past Week
Ethereum has been on a tear, outperforming Bitcoin over the past week, climbing 15% compared to Bitcoin's 1.7% decline during the same period. This marked a significant recovery for Ethereum, which had lost ground following the US election. The ETH/BTC trading pair demonstrated strong momentum, rising from 0.035 to 0.038 on Thursday, according to TradingViewdata.
Total Value Locked in DeFi Projects Hits $69.3 Billion
The total value locked (TVL) in Ethereum-based decentralised finance (DeFi) projects grew by 7% in the past week, reaching a record high of $69.3 billion, according to DefiLlama. This surge suggests rising confidence in Ethereum as a platform for financial innovation, with more investors and developers drawn to its robust ecosystem.
Stablecoins Drive Growth, Exceeding Previous All-Time High
The total stablecoin supply has exceeded the previous all-time high of $188 billion, with stablecoins such as USDT (USDT-USD) and USDC (USDC-USD), primarily operating on the Ethereum blockchain, driving growth. According to a recent report by Presto Research, "stablecoin metrics show Ethereum remains a platform of choice for builders exploring real-world applications, despite skepticism from some market participants."
Ethereum's Robust Growth Driven by DeFi and NFTs
Ethereum has been bolstered by its role in DeFi and non-fungible tokens (NFTs), with a market cap of over $434 billion. The price of Ether has risen to around the $3,600 mark, representing a 79% increase over the past year, according to Coingeckodata.
Traditional Finance Developments Influence Cryptocurrency Market
The cryptocurrency market's performance has also been influenced by developments in traditional finance. US equity markets rallied earlier this week after president-elect Trump nominated Scott Bessent as Treasury secretary, with investors responding positively to Bessent’s proposed "3 Arrows" strategy.
Cardano and Solana Post Gains, While Wall Street Main Indices Close Lower
Meanwhile, Cardano has increased in value by 26% in the past week, according to CoinGeckodata. Market analysts attribute this optimism to a combination of improving investor sentiment and growing use cases in DeFi. However, Wall Street's main indices closed lower on Wednesday, with the Nasdaq (^IXIC) leading declines.
Conclusion
The cryptocurrency market has witnessed significant growth, with Ethereum surging to new heights and the global market capitalisation reaching record levels. The rise of stablecoins and DeFi projects has driven this growth, with Ethereum emerging as a platform of choice for builders exploring real-world applications. As the market continues to evolve, investors and developers will be closely watching developments in traditional finance and the impact on cryptocurrency prices.