Crypto Market Cap Reaches $3.12 Trillion—Is it About to Surpass France’s GDP?
The total crypto market cap achieved a remarkable new peak of $3.12 trillion, nearly rivaling the gross domestic product (GDP) of France.
On Nov. 11, the overall crypto market cap surged by 7% within a 24-hour period, primarily driven by a significant increase in Bitcoin, which climbed to $89,500.
In addition, Bitcoin’s individual market capitalization has surpassed $1.77 trillion, exceeding the GDP of Spain, as reported by the International Monetary Fund.
The last occasion when the total crypto market cap reached $3 trillion was on Nov. 15, 2021, shortly after Bitcoin hit its previous all-time high of $69,000 during the 2020-2021 bull run, according to CoinGecko, which monitors 15,129 cryptocurrencies across 1,149 exchanges.
Also read: Investing in Blockchain Stocks: A Guide
Understanding Crypto Market Cap
Before we start making comparisons with national economies, it is important to first grasp what the term “crypto market cap” actually refers to. In straightforward terms, the market cap, or market capitalization, of a cryptocurrency is determined by taking its current price and multiplying that by the total number of coins that are currently available in circulation. This calculation results in a figure that represents a general snapshot of the currency’s overall value within the marketplace. For individuals who are keen on figuring out the market cap of certain cryptocurrencies, there are various online resources and calculators that can serve as useful tools to assist with this task.
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The Rise to $3.12 Trillion
The journey to a $3.12 trillion crypto market cap hasn’t been overnight. Over the past few years, the cryptocurrency market has experienced significant fluctuations, driven by technological advancements, regulatory changes, and shifts in investor sentiment. Bitcoin and Ethereum remain dominant players, but a slew of altcoins has also contributed to the market’s expansion.
Also read: MicroStrategy Bitcoin Stash Surpasses $20 Billion
Comparing Crypto to National Economies
France’s GDP, a benchmark for comparison, currently stands slightly above $3 trillion. If the cryptocurrency market continues its upward trajectory, it could soon rival or even exceed the GDP of France.
If the cryptocurrency market were considered a nation, it would already rank as the eighth-largest in terms of GDP, following the United States, China, Germany, Japan, India, the United Kingdom, and France.
Meanwhile, According to data from Google Finance, the market capitalization of the cryptocurrency sector has surpassed that of tech powerhouse Microsoft and is nearing the valuations of Nvidia and Apple, the two most valuable companies globally. Additionally, the surge in Bitcoin prices has once again elevated its market cap above that of silver as of November 11.
Related: New Bitcoin All-Time High Above $79K Is Just the Beginning: Analysts
Implications of Crypto Surpassing GDP
If the crypto market cap does surpass the GDP of a major economy like France, it could have several implications:
- Increased Attention from Regulators: As cryptocurrencies become more significant, governments may increase regulatory scrutiny to ensure financial stability and protect investors.
- Investor Interest: A larger market cap could attract more institutional investors, further legitimizing the cryptocurrency industry.
- Economic Influence: The rise of crypto might influence monetary policies, as central banks and governments consider digital currencies’ roles in their economies.
