Bitcoin and Ether dominated the crypto market as it reached its highest valuation in a year. The uptrend can be linked to the latest CPI numbers showing annual inflation rates to have come down to 6.5% in the United States, giving a much-needed positive outlook for financial markets.
After more than a year of trending to the downside, the global cryptocurrency market reclaimed its $1 trillion valuation. The run to the upside was triggered by Bitcoin (BTC), the world’s largest cryptocurrency by market cap, breaking through its $16,000 support level to cross the $20,000 mark.
As per data from CoinGecko, the total trading volume of the crypto market in the last 24-hours stands at $106 billion. Bitcoin (BTC) continues to dominate the sector, being responsible for 39.1% of all trades, followed by Ether (ETH), which has a 18.2% market dominance.
At the time of writing, BTC, which has seen its value rise over 23% in the past week, is trading at $23,949 – up by over 11% in the last 24 hours. With its total market cap rising to $403 billion, Bitcoin also saw the highest trading volume in the previous day at $53.4 billion.
The price of ETH rose 22% in the past week. The second largest cryptocurrency by market cap is currently trading at $1,556 – up by 10.3% in the last 24 hours. With a trading volume of $14.17 billion, Ethereum’s total market cap hit $187 billion today.
Solana (SOL) had the largest gain of any token currently trading on the market, rising 74.2% since last week. At the time of writing, SOL is trading at $23.61 – up by 39.4% in the last 24 hours. With the total market cap reaching $8.7 billion, the eleventh-largest cryptocurrency saw a trading volume of $2.8 billion yesterday.
Binance’s BNB token, priced at $312.98, is up by 8.4% in the last 24 hours and 20.5% since last week. The fourth largest cryptocurrency had a 24-hour trading volume of $1.2 billion, with its total market cap reaching $51 billion.
Meanwhile, Cardano (ADA), is currently trading at $0.36 – up by 11.6% since yesterday and 31.5% in the past seven days. The Ethereum rival has a 24-hour trading volume of $688 million as its total market valuation hit $12.8 billion.
Ripple (XRP), which is trading at $0.40, has risen by 7.4% in the past 24 hours and 17.6% since last week. With a total market cap of $20.5 billion, the sixth-largest cryptocurrency saw trading volumes of $1.6 billion yesterday.
Polygon (MATIC) is trading at $1.01 – up by 11.1% in the last 24 hours and 26.6% in the past week. With a trading volume of $735 million since yesterday, the layer-2 scaling solution for Ethereum has a total market cap of $9 billion.
The market cap of Metaverse projects rose by 19.2% in the last 24 hours to reach $6.94 billion. Sandbox (SAND) and Decentraland (MANA) made the biggest gains in the sector, with both tokens rising by 20.2% and 29.2% today to trade at $0.66 and $0.56 respectively.
The total value of assets under the reserves of cryptocurrency exchanges reached $83.8 billion. Binance, the largest crypto exchange by trading volume, facilitated over $24.8 billion worth of trades in the last 24 hours, while Coinbase and OKX, the second and third largest crypto trading platforms, saw $3.69 billion and $2.26 billion in trades within the same period.
Despite an uptick in the market, cryptocurrencies are currently not trading at their best prices. Most of the tokens are down 60-90% from all-time highs achieved in previous bull runs. The turnaround can be attributed to the U.S. government releasing its latest CPI numbers, which show the annual inflation rate to have come down to 6.5%. However, this must not be taken as a sign of an upcoming bull run, because it is still unclear whether the U.S Federal Reserve will continue to raise borrowing interest rates on the dollar to bring inflation down to the 2% target level.