The capitalization of the cryptocurrency market reached a record $ 2 trillion

The cryptocurrency market capitalization exceeded $ 2.1 trillion and reached the level of April 2021. Bitcoin and Ethereum account for the majority of the total volume. According to CoinMarketCap, in the second half of Tuesday, February 27, the total market value of cryptocurrencies reached $ 2.15 trillion with a 24-hour increase of 1.3% and a trading volume of $ 89 billion.

Amid the overall market growth, bitcoin’s capitalization reached $ 1.14 trillion, with the first cryptocurrency’s dominance level of 49.9%. Ethereum has reached a capitalization of over $ 396 billion. In total, the dominance of the pair of the two leading cryptocurrencies is 67.2% of the total market capitalization.

During the calendar month, the cryptocurrency market’s fear and greed index changed from neutral (55%) to close to extreme «greed» (76%), which demonstrates a greater likelihood of investors developing a lost profit syndrome amid the explosive growth of flagship crypto assets.

The growing dominance of BTC and ETH, as well as the significant gap between the capitalization of these two cryptocurrencies and other digital assets, signals to investors that the market is about to overheat, correct itself quickly, and that they need to decide on options for diversifying their asset portfolios to reduce risks.

The day before, the Velo Data portal cited data that for the first time since March 2023, the annual futures rate on the largest exchange Binance exceeded 100%. At the same time, similar funding rates on Bybit and Deribit exchanges also break annual records and reached 95% and 56%, respectively.