The crypto market just hit a massive milestone: Total market capitalization has crossed $4 trillion for the first time ever. The record-breaking moment comes on the heels of a strong altcoin rally and a wave of regulatory momentum out of Washington developments could mark the start of a new era for digital assets.
Bitcoin, the leading cryptocurrency, shot up to an all-time high of $123,205 earlier this week, lifting the entire market. But its not just BTC doing the heavy lifting; a lot of the action lies in altcoins. Ether jumped 22% over the past five days. Uniswap soared 20% on Friday alone, and Solana added another 5.6%, continuing its climb as a popular token for both developers and retail traders.
One explanation for all this momentum? Regulation. This week, Congress passed the first-ever federal legislation for stablecoins crypto tokens tied to real-world assets such as the U.S. dollar establishing a regulatory framework for a $265 billion slice of the market and potentially clearing the way for corporations to comfortably issue their own. The bill, backed by Republicans and supported by President Donald Trump, is seen as a major step toward legitimizing stablecoins, which Citigroup says could swell to $3.7 trillion by 2030. (While stablecoins are pegged to less-volatile assets, they don't always live up to their name; they can and do become depegged.)
That wasnt the only regulatory win for the crypto firms. On Thursday, the House also passed a crypto-market structure bill. It still needs to clear the Senate, but the move signals growing bipartisan interest in establishing clear, industry-backed rules for digital assets.
Meanwhile, investors arent waiting on the sidelines. Crypto ETFs are booming, with Bitcoin funds pulling in $5.5 billion and Ether ETFs attracting $2.9 billion so far in July. The rush of capital shows that interest in crypto is alive and well and growing.
Put it all together the rising market cap, altcoin growth, and new regulations that pull back from the Biden administration's era of stricter oversight and it looks like crypto is entering a new phase. Some are already calling it Crypto 2.0.
