INTERNATIONAL – The economic effects of the coronavirus outbreak have sent investors in search of assets that can offer shelter during the stock market fluctuations. Due to their decentralized nature, cryptocurrencies positioned as an inflation-resistant hedge.
According to data gathered by BuyShares.co.nz, the market capitalization of the three leading cryptocurrencies reached $207 billion last week, a 40 percent jump since the beginning of the year.
Market Cap Surged 90 percent After Covid-19 Crash
In January, the market capitalization of Bitcoin, Ethereum and Tether, as the three leading cryptocurrencies amounted to $148.86bn, revealed the CoinMarketCap data. Due to the Covid-19 crash, this value tumbled to $106.51bn on March 15th, almost 30 percent drop since the beginning of the year.
However, the leading cryptocurrencies promptly recovered, with the market capitalization surging 90 percent in the next three months and reaching $202.37bn in June. The increasing trend continued in the following weeks, with the figure growing by $4.6bn and reaching $206.97bn on July 12th. Statistics indicate the combined market cap of Bitcoin, Ethereum, and Tether has increased by 40 percent since the beginning of 2020, despite the effects of the coronavirus outbreak.