In an exciting plot twist, Grayscale Investments, one of the largest companies in the world crypto asset management companies, has recently embraced X, drawing parallels between the burgeoning growth of cryptocurrencies and the Canadian stock market. In its statement shared today, May 11, the crypto asset management company also placed crypto and US dollar-denominated emerging market (EM) bonds in the same league, sending ripples across the crypto industry in general.
Grayscale and Bloomberg appear to have shared an index comparing the cryptocurrency market capitalization to that of other bonds and markets in recent years. Let's delve into this index.
Crypto Market Cap Rises to Unprecedented Levels
According to the chart shared by Grayscale Investments, the cryptocurrency market capitalization, including stablecoins, has risen to unprecedented levels in recent years. Market capitalization, which initially led Japanese financial stocks in 2018, valuing it at more than $500 billion, has continued to rise gradually. As we move into 2021, the cryptocurrency market capitalization has surpassed US high-yield corporate bonds, valued at more than $1.5 trillion.
Subsequently, in 2022 and 2024, the total cryptocurrency market capitalization surpassed dollar-denominated emerging market bonds, Canadian stock markets, and even global inflation-linked bonds, surpassing the $2.5 billion mark. Dollars. These data, taken together, have instilled immense optimism in the crypto community, underscoring the growing global adoption of digital assets.
It is worth noting that the increase in digital asset market capitalization coincides with this year's much-hyped "bull cycle." bitcoinEthereum and numerous altcoins rose in sync as this year began, mostly aligning with the BTC halving frenzy.
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Grayscale Index: What's the Scoop?
Meanwhile, in providing information, Grayscale stated that the Bloomberg Global Inflation Linked Index measures investment-grade inflation-linked government debt from 12 other developed market countries.
On the other hand, the MSCI Canada Index is designed to measure the performance of the large and mid-cap segments of the Canadian market. With 87 components, the index encompasses approximately 85% of Canada's free float-adjusted market capitalization.
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The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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