The economic effects of the coronavirus outbreak have sent investors in search of assets that can offer shelter during the stock market fluctuations. Due to their decentralized nature, cryptocurrencies positioned as an inflation-resistant hedge.
According to data gathered by Buy Shares, the market capitalization of the three leading cryptocurrencies reached $207bn last week, a 40% jump since the beginning of the year.
Market Cap Surged 90% After COVID-19 Crash
In January, the market capitalization of Bitcoin, Ethereum, and Tether, as the three leading cryptocurrencies amounted to $148.86bn, revealed the CoinMarketCap data. Due to the COVID-19 crash, this value tumbled to $106.51bn on March 15th, almost 30% drop since the beginning of the year.
However, the leading cryptocurrencies promptly recovered, with the market capitalization surging 90% in the next three months and reaching $202.37bn in June. The increasing trend continued in the following weeks, with the figure growing by $4.6bn and reaching $206.97bn on July 12th. Statistics indicate the combined market cap of Bitcoin, Ethereum, and Tether has increased by 40% since the beginning of 2020, despite the effects of the coronavirus outbreak.
Ethereum Market Cap Increased 90% Since January
The CoinMarketCap data revealed the Bitcoin market cap jumped 31% in the last six months. In January, the market capitalization of the leading cryptocurrency amounted to $130.54bn. By the middle of March, this figure tumbled to $88.96bn. However, the last few months witnessed a recovery, with the market cap rising to $170.87bn last week.
Statistics indicate that Ethereum witnessed the most significant market cap increase in 2020. In the last six months, the market capitalization of the second-leading cryptocurrency surged by 90%, rising from $14.22bn in January to $26.91bn last week.
Statistics show that Tether market cap rose from $4.10bn in January to $9.19bn on July 12th, a 35% jump since the beginning of the year.