Cryptocurrency market capitalization exceeded $2 trillion

The capitalization of the cryptocurrency market exceeded $2.1 trillion and reached the levels of April 2021. Moreover, more than half of the total volume is made up of Bitcoin and Ethereum.

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 growth of 1.3% and trading volume of $89 billion.

Against the backdrop of overall market growth, Bitcoin capitalization reached $1.123 trillion. The dominance level of the first cryptocurrency was about 52%. Ethereum has reached a capitalization of over $385 billion. Collectively, the pair of the two leading cryptocurrencies dominate, accounting for about 70% of the total market value.

During the calendar month, the index of fear and greed of the cryptocurrency market changed from neutral (55%) to close to extreme “greed” (76%), which demonstrates the high likelihood of investors developing FOMO amid the explosive growth of flagship crypto assets.

The growing dominance of BTC and ETH, as well as a significant gap in the capitalization level of these two cryptocurrencies from other digital assets, signals investors about the beginning of market overheating, an imminent correction and the need to make decisions about options for possible diversification of the asset portfolio to reduce risks.

The day before, the Velo Data portal provided 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 financing rates on the Bybit and Deribit exchanges also hit annual records and reached 95% and 56%, respectively.