Almost $17 billion has been added to the total market cap of all digital currencies in just over one week, jumping from £30 billion to almost $47 billion with $5 billion added just yesterday after it itself saw a jump of $4 billion from the previous day.
Everything is up in the greatest boom this space has ever seen as worldwide interest reaches new levels nearly a decade after blockchain based currencies were introduced to the world.
Bitcoin remains in the lead with a market cap of $26 billion, rising around 3.5% yesterday, but faces a stiff challenge from ethereum which has seen an astonishing rise from $1 billion to $9 billion in just two months.
Bitcoin’s copycat, litecoin, after being ignored to the point of forgotten, has recently started moving up, gaining a market cap of $1 billion, following its activation of segregated witnesses (segwit) which intends to allow layer two protocols for micropayments.
The activation is probably more intended to show bitcoin, which has been mired in in-fighting for now more than two years regarding scalability, how segwit or layer 2 protocols would work. In the process, giving litecoin some attention for doing something somewhat different.
Ethereum’s copycat, ETC, has also been rising, with its market cap standing at around $700 million. The rise follows an announcement that the Ethereum Classic Investment Trust has now launched.
The trust uses a loophole to allow institutional investors to purchase ETC with some restrictive conditions such as inability to sell the shares for a year or more on top of a 3% yearly fee. It has, however, given ETC at least something to talk about, so price went up around 7% just today.
Interestingly, there are around 7 eth based tokens in the top 30 digital currencies. If we add eth copycats like ETC and Lisk, then we’re nearing around 30% of the entire ecosystem being based solely on eth.
Something very unique which even bitcoin does not enjoy because it doesn’t have smart contracts. While eth’s smart contracts have allowed it to ICO new tokens, thus creating a vibrant environment that centers around the platform.
That means eth’s market share continues to increase, in price as well as in attention, developers, projects, with the currency seemingly headed for a bid to take the market lead. Whether it will succeed in doing so, time alone will let us know.