In the latest indication of a resurgence in crypto markets, total crypto market cap broke $2T for the first time since May 2021.
The cryptocurrency markets have recorded a notable rise, with market value surging nearly $700 billion. The market is still down roughly $500 billion from the all-time high of $2.5 trillion recorded in May 2021 right before the massive drawdown.
After breaking into a $1-trillion asset earlier this year, Bitcoin experienced a major sell-off, with its market cap dropping to $560 billion as of July 2021.
Ether, the second-largest cryptocurrency by market cap, has posted more gains since the bear market, surging by over 80% to over $380 billion in market cap valuation.
At the beginning of the month, on-chain market analysis firm Glassnode revealed that bitcoin has experienced a notable surge in the number of active addresses in July 2021, with active BTC entities rising 30% from 250,000 to 325,000 active users.
That was the biggest surge ever recorded, coming after the number of active bitcoin entities dropped 41% from 425,000 in January 2021 to below 245,000 addresses in early July 2021.
The amount of bitcoin held on addresses storing between 100 and 10,000 BTC had also grown to 9.23 million bitcoins ($364 billion) as of Aug. 1 2021.
Moreover, according to Santiment, another market analysis firm, 3 key metrics in their analysis had a drastic spike in unison, a sign of a major price rally.
Here is a quick breakdown of the happenings:
- Bitcoin crossed $40K for the first time since mid June 2021
- Active addresses went up to a 3-week high
- Both social and trading volumes hitting 5-week highs
Some of the reasons behind this latest surge are attributed to Elon Musk.
Last month, his announcement that both he and his company Space X held bitcoin saw the cryptocurrency climb above $32, 000.
The billionaire also added that his other company, Tesla, was planning to resume crypto payments for car purchases following a significant drop in the amount of non-renewable energy generating bitcoin.
The recent Ethereum’s London Hardfork upgrade is also another factor, having sent ETH rallying by 50%.
Institutional investors are also playing a more significant role in the industry.
RECOMMENDED READING: The Crypto Market Experiences the Largest Bull Market Drawdown Since 2013
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