Crypto regains ground, surpassing $2 trillion market cap for first time since May

The combined market value of cryptocurrencies has surpassed $2 trillion (€1.7 trillion) for the first time since May after the value of leading tokens such as Bitcoin surged in recent weeks.

The $2 trillion boundary was breached on Saturday when the market cap hit $2.02 trillion (€1.71 trillion), according to Coinmarketcap, before dipping on Sunday.

It marks the resumption of an erratic year for cryptocurrencies, which saw unprecedented high valuations in the early months of the year, as Governments around the world pumped the economy with stimulus measures.

In February, Bitcoin alone exceeded a $1 trillion market cap, as individual coins were being traded at $54,000 (€44,463).

It came as the coin appeared to be gaining a sheen of legitimacy, with Tesla announcing it had purchased $1.5 billion (€1.27 billion) worth of the token and saying it would be accepting Bitcoin as a form of payment.

However, in a stunning reversal, the company then announced it would stop accepting the coin in May, due to its “great environmental cost”, sending its value plunging around 12 per cent.

While cryptocurrencies have not yet quite regained their early-year successes, in July and August so far, they have been on a general upwards trend.

Bitcoin, for example, has climbed more than 50 per cent since its July low to rest at just over $47,000 (€39,800).