In a thrilling development, Grayscale Investments, one of the world's largest crypto asset management companies, recently entered X, drawing parallels between the rapid growth of cryptocurrencies and the Canadian stock market. In a statement shared today, May 11, the crypto asset management company also placed cryptocurrencies and USD-denominated EM (emerging market) bonds in the same league, causing waves across the broader cryptocurrency industry. .
Grayscale and Bloomberg appear to have shared an index for the past few years that compares the market capitalization of cryptocurrencies to that of various other bonds and markets. Let's take a closer look at this index.
Cryptocurrency market capitalization surges to unprecedented levels
According to a chart shared by Grayscale Investments, the market capitalization of cryptocurrencies, including stablecoins, has risen to unprecedented levels in recent years. Initially, it was ranked at the top of Japan's financial stocks in 2018, with a valuation of over $500 billion, but its market capitalization has continued to gradually rise. Fast forward to 2021, and the market capitalization of cryptocurrencies has overtaken US high-yield corporate bonds, with a valuation of over $1.5 trillion.
Then, in 2022 and 2024, the market capitalization of cryptocurrencies exceeded $2.5 trillion, surpassing US dollar-denominated emerging debt, the Canadian stock market, and even global inflation-linked bonds. Collectively, these data instill great optimism in the cryptocurrency community and highlight that the adoption of digital assets is increasing globally.
It's worth noting that the surge in digital asset market capitalization coincides with the much-touted “bull cycle” this year. Bitcoin, Ethereum, and a number of altcoins soared in sync with the start of the year, primarily in line with the BTC halving frenzy.
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Grayscale Index: What is a Scoop?
Meanwhile, Grayscale provided a disclosure, saying the Bloomberg Global Inflation-Linked Index measures investment-grade government inflation-linked debt in 12 other developed markets.
The MSCI Canada Index, on the other hand, is designed to measure the performance of the large-cap and mid-cap segments of the Canadian market. The index is comprised of 87 constituent stocks and represents approximately 85% of Canada's float-adjusted market capitalization.
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