Cryptocurrencies market cap exceeded $200B

In less than a year the market of crypto-currency grew more than tenfold; continue reading to learn more
03 November 2017   2360

At the moment of press, overall marketcap of cryptocoins, that are represented at Coinmarketcap, reached $200,849,000,000. 

Total Market Capitalization
Total Market Capitalization

The overall growth of the market is largely due to the recent sudden rise in the bitcoin price above $ 7000, the capitalization of which has already exceeded $ 120B. At that, the index of dominance of the first crypto currency is 61.2%. This means that the demand for bitcoin is higher than for all other cryptocoins combined.

Percentage of Total Market Capitalization (Dominance)
Percentage of Total Market Capitalization (Dominance)

Also, many altcoins are now showing growth, adjusting up after a deep dump. Among the top 10 caps on the Coinmarketcap rating, Bitcoin Cash continues to be the growth leader (+ 16% for the day and + 87% for the last 7 days).

Top ten cryptocurrencies
Top ten cryptocurrencies

The total daily trading volume of crypto-currencies also reached record values ($ 9.4 billion).

It should also be noted that at the beginning of this year, the market capitalization of the cryptocurrency hardly exceeded the level of $ 18 billion. Consequently, in less than a year the market of cryptocurrencies grew more than tenfold.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.