The total market capitalization (market cap) of cryptocurrencies has surged almost 800% this year, as the broader asset class continues to draw robust inflows.
This market cap reached $158.5 billion today, roughly 795% higher for the year, according to CoinMarketCap.
Cryptocurrencies attained this new market cap during a weekend when the price of both Monero and Litecoin surged to fresh, all-time highs.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Broad Interest In Cryptocurrencies
The fact that these two alternative protocol assets reached these record levels is simply the latest sign of broad interest in digital currencies. Amid this trend, several crytocurrencies have climbed to record price levels.
A perfect example is Bitcoin, the first digital currency to scale. This year, the currency's price has climbed sharply, reaching several fresh highs.
While Bitcoin is the most valuable cryptocurrency by market cap, other lesser-known digital currencies have also enjoyed sharp gains.
Dogecoin, which was originally created as a joke, has experienced notable price increases this year, its market cap close to $200 million at the time of report, additional CoinMarketCap figures show.
Will History Repeat Itself?
Some have likened these sharp gains to the increases the stock market enjoyed during the tech boom. At the time, investors were throwing money at companies, regardless of whether they were profitable or not.
The stock market experienced a sharp correction starting in 2000, which caused many investors to incur sharp losses.
Will digital currencies suffer a similar fate? Only time will tell.
Disclosure: I own some Bitcoin and Ether.
