Cryptocurrency market capitalization and new opportunities

The total capitalization of all cryptocurrencies exceeded 0.5 trn in December 2017 for the first time, continuing its rise later on… Now there is a correction on the market... The cryptocurrency pricing for 2017 was foreseen, and it did take place; we shall further discover the reasons why… The growing market is good for traders-beginners as it neutralizes the consequences of the possible mistakes... At the same time, the current correction in the market reduces the entry threshold for new investors...

Notícias EXMO

Cryptocurrency market capitalization and new opportunities


In the beginning of 2018 the total value of bitcoin and altcoins has exceeded $700 bln.

We have already provided the general reasons of bitcoin rate, and other cryptos’ (altcoins), like LTC and ETH, movements in the article “Cryptocurrency rate changes: reasons and factors”. Now, having analyzed the events of 2017, we shall further discuss the tendencies affected most cryptocurrency rates in practice. It is important to understand what kind of the events of 2017 contributed to the success of cryptocurrencies. This information will enable to determine the factors inducing price increase.

The cryptocurrency market capitalization passed through the historically important point in $500 bln in December 13, 2017. In the beginning of 2018 this mark of the market volume went on rising and overpassed $700 bln. By the time the article was being written correction took place; the tendencies are well presented on the graph below.

Graph 1 demonstrates the total cryptocurrency market capitalization and its changes from January 2017 to January 2018.


Reasons of cryptocurrency market capitalization growth in 2017

The total capitalization of all cryptocurrencies from mid October to mid December 2017 increased more than by three times. The major price growth for cryptos has been forecasted in advance. So, it is not difficult much to determine post factum the reasons influenced this situation. The experts believe that the vast majority of these reasons will be accurate in 2018.

General interest growth in cryptocurrencies

Indeed, a general increase in interest in bitcoin, credibility from large investors not only contributed to the growth of the BTC itself; this also improved the positions of other dominant cryptocurrencies. Thus, that in a metaphorical sense, bitcoin, as the dominant currency, was a locomotive driving other altcoins, thereby increasing their rate and promoting capitalization.

Involvement of major corporations into cryptocurrency market

The enhancement of the business environment of most perspective altcoins is an important factor of cryptocurrency popularization. Thus, the information about improving partnership between Microsoft and Ethereum Foundation has immediately led to ETH cryptocurrency quotations rise.

Role of cryptocurrency in different economic domains

The growth in pricing and demand for cryptos was induced by the following factors. Bitcoin and altcoins program software was enhanced by adding the new features, thereby strengthening their roles in banking, and other economic spheres. Thus, a successful Litecoin SegWit integration in spring 2017 made the asset to increase by 6-7 times only in for spring months (rate growth continued later on).

Boost in confidence to cryptocurrencies and opportunities to use blockchain technology

Blockchain technology as a core fundamental technology of any cryptocurrency including bitcoin is getting more and more spread in the world. The opportunities for practical application of this technologies are growing in number as well. A lot of governments have appreciated the uniqueness, and efficiency of this technology for IT-sector. That is why blockchain technology was first applied in governmental, and international projects in 2017. A lot of experts suppose that blockchain, a so-called“Technology of future”, will soon become the basis for global business. These tendencies do enhance the credibility to cryptocurrencies, demonstrating effectively the realization, and application of blockchain technology.

Cryptocurrency expansion into traditional exchanges

The legitimacy of cryptocurrency made them more and more credible among the regulators. The expansion of Bitcoin into the traditional exchanges did also strengthen much the positions of altcoins. You can read more about what futures contract is and why it became the reason of BTC expanding into global capital markets in the articles by EXMO experts - "Bitcoin futures: what’s the matter?" and "Bitcoin futures: features and perspectives".

Major investors and speculative activities

In 2017 major investors became quite interested in buying cryptocurrency, which made rate rising of the most demanded coins including bitcoin. However, the rate was still speculated in the last year. The sudden and rapid increase in cryptocurrency pricing signalized about that activity.

Depending on the activity of the significant players on the cryptocurrency exchanges, and a number of some other factors the rates of the leading cryptocurrencies may get stabilized in the future. It is important to understand that the more rapid and non-stop growth is, the more opportunities for speculative activities arise. As a result, rate drop, and pricing depression are what cryptocurrencies may undergo in the end.

Cryptocurrency market perspectives and opportunities


The growing market ensures the bright perspectives either for experienced traders or those, who have started trading not long time ago.

Traders, buying for a rise (buy an asset when the price goes down and sel it when it goes up), appreciates the opportunities of the growing market due to the following reason. When entering the market at the wrong point (local price decrease follows a purchase of an asset instead of expected rise), there are chances to wait till the price get stabilized and up promptly.

The growing market is also good for traders-beginners. The matter is that the traders are getting acquainted with cryptocurrencies in the atmosphere of the pricing optimism, which provides them with known psychological stability. It is essential to understand that growth cannot last forever. That is why a trader needs to evaluate situation reasonably. That is one of the main rules of work on the cryptocurrency market. You can read more about what types of mistakes you should avoid in the article “10 mistakes of a trader. How to avoid them?”.

The “correction” tendencies are likely to appear along with developing of the favorable trends on the market. There are opinions that 2018 may become the year of “altcoins”, providing them with the opportunities to grow.

Graph 2 effectively demonstrates the altcoins market tendencies. Here you may find the changes to overall altcoins market capitalization, combining all types of cryptocurrencies except BTC, from January 2017 to January 2018.


Read more about the perspective altcoins and detailed analysis of the core altcoin in the coming materials from EXMO experts.

Market tendencies could not but impacted the development of EXMO cryptocurrency platform. EXMO team has also resumed the last year. In 2017 more than 1 000 000 users registered on the platform, reaching more than 100 000 users online per day. The number of currency pairs available on the platform increased from 13 to 46 in 2017.

You can learn more about digital economy, its evolution and importance of cryptocurrency as its valuable part in the article “Place of cryptocurrency in digital economy”.

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Visit EXMO Youtube channel to find out useful information on cryptocurrencies and trading on the platform.

Additional materials that may help you:
Verification process with EXMO
Reach more profit on EXMO – gain 25% more
Trade figures – what indicators to choose? Part 2
Bitcoin futures: features and perspectives
Cryptocurrency rate changes: reasons and factors

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Your respectfully, EXMO team