Singapore: The global cryptocurrency market capitalization has reached a historic high, surpassing $3 trillion. According to data from analytics provider CoinGecko, the market’s value briefly touched $3.2 trillion in early trading on Nov. 14 in Asia. This record-breaking figure is attributed to renewed optimism in the market, partially driven by the election of Donald Trump as U.S. president, as investors anticipate more crypto-friendly regulatory policies in the U.S.
This milestone represents a significant recovery from earlier this year when crypto prices were stagnant, and trading volumes were subdued. The market cap has now exceeded the peak levels seen in 2021, when stimulus measures during the pandemic fueled speculative investments across digital assets.
Leading the charge in this resurgence is Bitcoin, which recently set a new record high of $93,480. Bitcoin continues to hold the dominant position in the crypto market, with its recent gains catalyzing a broader market rally. “Generally, the way this market goes is bitcoin will break out, and then the rest of the altcoins will follow,” said Matthew Dibb, Chief Investment Officer at Astronaut Capital. “So there is that gradual rotation of capital…and then we can expect the total market cap to increase.”
Impact of U.S. Elections on Crypto Market
Trump’s victory, along with the election of several pro-crypto lawmakers to Congress, has added momentum to the cryptocurrency market, easing some of the regulatory uncertainties that have previously hampered growth. Since the U.S. election on Nov. 5, Bitcoin has gained 30%, bringing its price to $90,000. Similarly, Ether has surged about 33%, now priced at $3,220, while Dogecoin, endorsed by Elon Musk, a Trump ally, has seen an astonishing 140% rise.
Crypto exchange-traded funds (ETFs) have also drawn heavy interest, an indicator that financial institutions, which typically avoid holding digital assets directly, are entering the space indirectly. “Bitcoin enthusiasts are known for bold predictions, but hitting $100,000 by year-end seems feasible,” noted Carl Szantyr, Founder and Managing Partner of Blockstone Capital.
A Market with Room to Grow
Despite its impressive gains, the crypto market’s overall value remains small compared to traditional assets. Gold, for instance, is currently valued at nearly $19 trillion, while the S&P 500 has a market capitalization of $50.6 trillion.
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Moreover, certain sectors of the cryptocurrency ecosystem have shown only modest recovery. According to data from NonFungible.com, average sales prices for non-fungible tokens (NFTs) have been around $2,000 since May, with a recent uptick to about $2,700. In Singapore, DBS Bank reports a trading surge on its digital exchange, with more than a third of last year’s volume executed in the first 10 days of November. However, investors are still cautious about venturing into more niche areas of the market. “We’ve not seen our clients shift their assets towards more exotic platforms or decentralized exchanges,” said David Hui, Chief Commercial Officer of DBS Digital Exchange.
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Outlook for the Crypto Sector
Industry insiders remain optimistic about the market’s growth potential, expecting renewed interest to propel developments in decentralized finance (DeFi) and blockchain applications. “There’s increased interest and willingness to look at DeFi and other possibilities associated with blockchain,” said Danny Chong, co-founder of Tranchess, a decentralized asset tracking platform. He added that sustained market capitalization could drive deeper interest in themes like tokenization of real-world assets and blockchain-based payment services.
