In 2021, cryptocurrencies were on a wild ride. Yuriko Nakao/Getty Images
For the first time since May, the total crypto market value has surpassed $2 trillion.
It reached $2.02 trillion Saturday, before falling slightly to $1.96 trillion Sunday.
As investors are being lured back, Bitcoin, Ethereum, and other tokens have seen a rebound in the last week.
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After a strong rebound of bitcoin and other tokens, the market capitalization for cryptocurrency has surpassed $2 trillion.
According to Coinmarketcap, the total value of all cryptocurrency reached $2.02 trillion Saturday. The value of all cryptocurrencies hovered at that level, before dropping to $1.96 trillion on Saturday. Bitcoin's market capitalization was $863 billion while ether's was at $370 billion.
The year has been wild for cryptocurrency. They were booming in the first months of 2021 when governments provided stimulus to economies. But they plummeted in May and June after Elon Musk, Tesla boss, criticized bitcoin's use of energy and China clamped down on tokens.
The market has seen a renewed lease of life over the past few weeks. Bitcoin traded at $46,000 on Sunday, after rising to below $30,000 in July.
Analysts are still unable to pinpoint the reason why the asset class is rebounding. Many believe that Elon Musk's remarks have been a catalyst. In July, he stated at a bitcoin conference that Tesla would accept bitcoin again as payment if it becomes more eco-friendly.
Continue reading: TrendSpider's chief market analyst shares his technical indicators to tell him that bitcoin and ether will rise to new heights over the next five months
Institutions appear to be interested in the technology, even with the recent price drop. Insider reported in July that JPMorgan gave its financial advisors permission to allow all wealth-management clients to access cryptocurrency funds.
In recent weeks, so-called altcoins like ether and cardano’s native token ada also saw a sharp rise. The second-largest cryptocurrency, ether, has seen its value rise from $1,800 to $3,156 in July thanks to a major network upgrade.
Ada has seen a surge in the last few days due to excitement about upcoming network changes. In July, the token was trading at less than $1.10 but it traded at $2.10 Sunday.
Despite growing regulatory threats, cryptocurrencies have seen a rebound. Global watchdogs are becoming more concerned about crypto derivatives exchanges like Binance. The US Securities and Exchange Commission has indicated that it would like to increase oversight of the crypto landscape.
