The capitalization of all cryptocurrencies exceeded one billion dollars for the first time in history. While some analysts warn that the entire cryptocurrency industry is a kind of bubble that could burst at any moment, Chainlink co-founder Sergey Nazárov says that bitcoin still has room to grow.
The market capitalization of all cryptocurrencies grew 10%, to $ 1.042 billion on Jan.7, according to data collected by cryptocurrency tracker CoinMarketCap. Today bitcoin, which recently hit another all-time high, accounts for around 69% of this capitalization, followed by ethereum with 13%.
Between March 2020 and January 8, 2021, the price of bitcoin has grown more than 900%, from 3,850 dollars to exceed the mark of 40,000 dollars as the governments of many countries do everything possible to mitigate the economic impact negative caused by the pandemic. As a result, the actions taken by the Federal Reserve have raised concerns about the possible increase in inflation and the depreciation of the US dollar.
The largest cryptocurrency is also gaining momentum as more and more investors are increasingly convinced that it is a viable enough asset and not a speculative bubble, as several analysts claim.
Today there is a lack of trust in traditional institutions, Nazárov, co-founder of Chainlink, a decentralized network that provides data to smart contracts on the blockchain, explained to Reuters.