Early morning on August 23, the total market cap of cryptocurrencies broke through the $150b line for the first time, according to coinmarketcap.com. As I’m writing this article, the TMC sits just above $152b, showing nothing but strength. We saw another record shortly after passing through the 150 line, jumping as high as $154b. This is an outstanding situation for crypto, as a whole, because as the market grows in size, it attracts bigger money; pushing all us holders a little closer to a Lambo or two!
Some perspective
To be brutally honest, the total market cap in our little digital currency world still has a lot of growing room. The market cap that covers crypto is looking great, but it is nowhere close to the value of small mainstream markets For a little perspective, the market cap of gold is measured in trillions; so we have some ground to cover. The general sentiment, however, is that when the total market cap is bullish, the individual assets within the market will also be bullish.
What I find especially interesting about today’s TMC bull run is that no individual coin was performing especially well during this time. What I mean is, the TMC hit an all time high without an individual coin also hitting an all time high. What does this mean? Well, with my uneducated mind, I work out that the market is growing organically – meaning, all the top performing coins are experiencing exponential growth together. We have seen the relationship between Bitcoin and Ethereum, when one rallies up, so does the other. This makes for some extremely interesting green days, and some tear-filled red days.
What does this mean?
Well, it’s easy to feel like we’re at the end of our growing days. With a market cap of $150b, some people think the full potential has been reached. After all, in August just three years ago, the total market cap was just north of $7b. That is some massive growth. And it is my opinion that we will continue to see exponential growth. Sure, there will be dips and runs, but all you have to do is be patient.
I like to explain it this way: we’re past the early adopter days. crypto is becoming well established, it isn’t mainstream by any stretch, but it’s doing pretty well. If you bought in now, you wouldn’t be comparable to the guy who helped Henry Ford build his first vehicle; but you’d probably be pretty similar to the guy who invested in his first assembly line!
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