Cryptocurrency grew 90% after COVID-19 crash; BuyShares NZ

By Rahul Vaimal, Associate Editor
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According to data gathered by New Zealand’s BuyShares, the market capitalization of the 3 leading cryptocurrencies, Bitcoin, Ethereum and Tether has grown by 40 percent to reach $207 billion last week from the beginning of the year with a 90% raise at the market capitalization observed after COVID-19 crash.

Due to their decentralized nature, cryptocurrencies positioned as an inflation-resistant hedge as COVID-19 has made investors search for assets that can offer shelter during stock market fluctuations.

Substantial growth after COVID-19 crash

As per the CoinMarketCap data, the market capitalization of the 3 leading cryptocurrencies was $148.86 billion in January. Due to the COVID-19 crash, this value tumbled to $106.51 billion on March 15, almost a 30 percent drop compared to the valuation at the beginning of the year.

However, the leading cryptocurrencies immediately recovered, with the market capitalization climbing 90 percent in the following 3 months and reached $202.37 billion in June. The increasing trend continued in the following weeks, with the figure growing by $4.6 billion and reaching $206.97 billion on July 12.

Statistics show that the combined market cap of Bitcoin, Ethereum, and Tether has increased by 40 percent since the beginning of 2020, despite the effects of the coronavirus outbreak.

Ethereum rose by 90 percent since January

The CoinMarketCap data revealed that the Bitcoin market cap jumped 31 percent in the last 6 months. In January, the market capitalization of the cryptocurrency amounted to $130.54 billion. By mid-March, the figure tumbled to $88.96 billion. However, the last few months witnessed a recovery, with the market cap rising to $170.87 billion last week.

Statistics indicate that Ethereum witnessed the most significant market cap gain in 2020. In the last 6 months, the market capitalization of the second-leading cryptocurrency surged by 90 percent, rising from $14.22 billion in January to $26.91 billion last week.

The statistics show that the Tether market cap rose from $4.10 billion in January to $9.19 billion on July 12, which is a 35 percent jump since the beginning of the year.