Crypto market capitalization hits record high: USD 4 trillion for the first time

The cryptocurrency market reached USD 4 trillion for the first time in its history.

The crypto market capitalization of over $4 trillion for the first time places the digital asset ecosystem among the largest economies on the planet. According to market data, this level exceeds the gross domestic product of nations like the United Kingdom, France, and Italy, and redefines the financial and geopolitical scope of the sector. 

The data, supported by sources such as CoinGecko and CoinMarketCap, indicates an increasingly deep integration of cryptocurrencies into the global economic system.

Bitcoin and Ethereum lead the crypto market momentum

Bitcoin remains the dominant cryptocurrency in the ecosystem, with a market capitalization exceeding USD 2,4 trillion and a price close to USD 118.000 at the time of writing. Its weight represents about 60% of the total crypto market, consolidating its role as a store of value and strategic asset for institutional funds. 

Ethereum, meanwhile, surpassed $3.700, growing 70% in less than a month. The rally in this cryptocurrency, the second largest in the market, has been driven by growing institutional buying, record inflows into ETFs and mutual funds, and a sharp short squeeze that liquidated over $1.000 billion in short positions.

Other altcoins such as XRP, Solana, Dogecoin, and Cardano also saw significant gains this week, with XRP reaching $3,6 per unit, Solana surpassing $184, and Dogecoin climbing to $0,25 per token. Cardano, meanwhile, approached $0,90 for the first time since last March. 

The shift in capital toward these alternative digital assets suggests a diversification of investor appetite and a search for opportunities beyond the cryptocurrencies that lead the digital market. 

The United States as a key catalyst for market growth

One of the most determining factors in this bullish cycle has been the passage of the GENIUS Act, the first federal legislation on stablecoins in the United States, which has already been signed by President Donald Trump. This regulation establishes a legal framework for dollar-pegged tokens, legitimizing a market of more than USD 265.000 billion and projecting its expansion to USD 3,7 trillion by 2030, according to Citigroup.

In addition, the House of Representatives also approved the CLARITY Act This was a historic week for the United States and for crypto assets. This law defines regulatory powers between the SEC and the CFTC, aiming to bring order to the complex world of digital assets. The law establishes a clear and detailed framework defining what each digital token is—whether it's a security, a commodity, or a stablecoin—and distributes responsibilities among federal oversight agencies.

But in addition to GENIUS and CLARITY, US lawmakers also vetoed the development of a central bank digital currency, with the approval of the draft Anti-CBDC LawThese measures have also been supported by the Donald Trump administration and mark a new era of legal certainty for the sector. 

“Crypto Week,” which took place between July 14 and 18 in the US Congress, has been interpreted as a sign that cryptocurrencies have acquired great strategic relevance in national economic policy.

The institutional rise of crypto

Bitcoin and Ethereum ETFs have also been key players in this crypto market rally. In July, BTC ETFs accumulated over $5.500 billion in inflows, while ETH ETFs surpassed $2.900 billion. Public companies have also been adding more cryptocurrencies to their balance sheets, reinforcing these assets' role as safe havens and stores of value, as well as inflation hedging tools.

Strategy, led by Michael Saylor, bought nearly 10.000 BTC in the last month, while BlackRock has maintained sustained purchases of Ethereum for 29 of the last 30 days prior to the cryptocurrency's rally. World Liberty Financial, linked to President Trump, acquired USD 5 million in ETH in a single day. These movements are some of the largest that have occurred this month and reflect a accelerated institutionalization of the market, with traditional players adopting long-term crypto strategies.

Cryptocurrencies reaffirm their role in the global economy

After reaching an all-time high, the crypto market saw a slight correction, but remains near $4 trillion at press time. Furthermore, the Fear and Greed Index stands at 68 points, in "greed" territory, and trading volume exceeds $140.000 billion daily, correcting 20% in recent hours. 

Analysts have emphasized that the market's milestone of over $4 trillion is not merely symbolic, but rather a sign of the structural revaluation of cryptocurrencies within the global financial system.

However, despite the general enthusiasm and optimism, challenges remain. Volatility remains high, and some political sectors, such as those led by Senator Elizabeth Warren, question the adequacy of the new regulations approved in the country to protect consumers. Furthermore, the global macroeconomic environment and the evolution of interest rates could influence the sustainability of the current market growth.

In short, the record market capitalization of $4 trillion marks a period of consolidation for the cryptocurrency market. Beyond the speculative enthusiasm, the sector is showing signs of maturity, with greater regulatory clarity, institutional adoption, sustained flows in ETFs, and a financial narrative that positions it as a legitimate component of the global economic system. 

While the path to new records will depend on multiple variables, there's no doubt that the crypto ecosystem has become a player that governments, businesses, and markets cannot and will not ignore.