Ethereum has regained its position, just behind Bitcoin, as the cryptocurrency with the highest market capitalization. One of the things that makes this record special for the Ethereum blockchain is that it is the first time the market capitalization has surpassed that of all the altcoins in the crypto market, for the first time since February 2021.
Since the bull markets of 2021 and the bear market that followed suit, the market capitalization of Ethereum has dwindled behind other cryptocurrencies. But with the new record, only Bitcoin surpasses decentralized crypto in terms of market capitalization.
A screenshot of Ethereum's highest market cap since 2021 was shared on Twitter by a user. However, since that picture was taken at a $213 billion market cap, the cryptocurrency has added more digits to stand at $222 billion at the time of writing.
🟣Ethereum has eclipsed all other 🟢alts in combined marketcap for the first time since the only previous event in Feb 2021.— 𝐓𝐗𝐌𝐂 (@TXMCtrades) June 19, 2023
Also, it's 🟡BTC.D szn. First time at 50% since May 2021. https://t.co/7Xyup2ZR53 pic.twitter.com/quptvpOYvi
With the recent increase in market capitalization, it means that major crypto projects like Solana, Cardano, Dogecoin, Litecoin, and many others have been surpassed in terms of their market cap. One of the cryptocurrencies that come close is the Tether USDT, which has a market cap of over $80 billion.
Many Factors Contributing to Ethereum Market Cap Increase
The recent increase in Ethereum's market cap didn't just happen out of the blue. Many factors contributed to this new record.
With the record Ethereum has at the moment, it means that the current market cap is almost half of that of Bitcoin. The apex cryptocurrency has a market cap of more than $580 billion. At this figure, the market cap of Bitcoin is almost half of the whole crypto industry valuation.
The most prominent factor is that Ethereum, like Bitcoin, enjoys the first-mover advantage. First-mover advantage means that the cryptocurrency was the first to do certain things and had increased trust more than other counterparts.
The implementation rate of smart contracts on the Ethereum blockchain is nearly 100%, making it the longest-standing platform in this sector. Its innovation and expansiveness have made it a home for various projects, including Aave and Maker, which are anchored on the Ethereum blockchain.
Many projects perform their transactions actively on the Ethereum blockchain. Data from DeFiLlama shows that Ethereum’s DeFi protocols, as of June 20, cumulatively manage over $25.2 billion of assets.
The $25.2 billion of assets represents more than 50% of DeFi’s total value locked (TVL) to show you how massive this record is. There's also the topic of community in the Ethereum blockchain. The extensive community supporting the Ethereum network ensures that there's always constant and massive activity in the blockchain.
Ethereum Price Update
Within the past 24 hours, Ethereum price has done pretty well, although the majority of the crypto market has some green candles. Within the past 24 hours, the cryptocurrency with the second-largest market cap has been on the green side by more than 6%.
There's also some progress when the weekly chart is examined, as it has increased by more than 8%. Within a space of one week, Ethereum has added more than 150 USD to its price. Considering the cryptocurrency's price within the past month, it is managing to stay on the green side with an increase of 0.88%.