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Amid the ongoing bullish rally in the cryptocurrency space, the industry has hit a milestone in market capitalization. As highlighted by Matthew Sigel, Head of Digital Assets Research at VanEck, the crypto market cap has surpassed $4 trillion.
U.S. political shift spurs crypto momentum
Notably, this marks the first time in the short history of cryptocurrency that numbers have reached this high. The all-time high (ATH) indicates the massive adoption and growth the sector has recorded despite being less than 20 years old.
According to CoinMarketCap data, the market cap has surged from approximately $350 billion in 2013 to over $4 trillion by 2025. This translates to about a 1,052% increase within the time frame for the "digital gold" and a compounded annual growth rate of 28.5%.
Conversely, gold has registered 143% growth over the same period with a compounded annual growth rate of 7.8%.
The massive uptick in the cryptocurrency sector, particularly its recent surge that supported the climb above $4 trillion, has been attributed to a leadership shift. In the U.S., the reelection of the current president has contributed to the sector's growth.
When the U.S. president was reelected for a second term in office, crypto market capitalization was in the $2 trillion range. In less than six months since being sworn in, the crypto market cap has flipped $4 trillion.
Analysts consider the current U.S. administration’s stance to be pro-crypto compared to the previous one, with Gary Gensler as the chair of the Securities and Exchange Commission (SEC). Additionally, the policies of this administration, like the Genius Act for stablecoin regulation, have served as a growth catalyst for the sector.
Crypto defies critics as digital gold narrative strengthens
Interestingly, the cryptocurrency sector has continued to defy the grim prediction of skeptics and critics in the financial industry.
For instance, as U.Today reported, Peter Schiff had maintained that crypto would cause losses to market participants while encouraging investment in gold.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team