Why Is the Crypto Market Up Today? Explaining the $4 Trillion Market Cap
The cryptocurrency market is up today, with total market capitalization crossing the $4 trillion mark later than exiting the $4 trillion zone on August 22.
This 21-day exit led to significant outflows, with several crypto assets recording downward trends, including top assets such as BTC, ETH, and XRP. During the identical period, trading volume climbed to $156 billion.
The recent rebound attests to the growing liquidity inflow, with select tokens benefiting from the surge. FinanceFeed tracked the factors contributing to the crypto market’s sharp rise in the last 24 hours.
US Investors Back Crypto Again
One of the major contributors to the market’s performance has been inflows from U.S. spot platform-traded fund (ETF) investors, particularly in and ETH.
Data from shows inflows into BTC over the past two days have been the most intensive since July. Within this period, total purchases amounted to $1.3 billion worth of BTC.
BTC’s price responded positively, crossing above $116,000 earlier in the day, confirming stronger inflows into the market.
FinanceFeed also found that liquidity is being drawn heavily to altcoins despite the institutional inflows into BTC and ETH.
Altcoins Control Market Dominance
Market dominance charts on revealed that despite the inflows into BTC and ETH, altcoins continue to attract the largest share of funding.
The chart showed BTC and ETH’s dominance dropped by 1.1% and 0.25% respectively, while altcoins gained 1.36% during the identical period.
At press time, altcoins controlled 29.2% of total market supply, a notable climb from the previous day’s performance.
This shift in investor sentiment confirms that market inflows in the past day have been largely driven by altcoins, a trend that could likely continue.
FinanceFeed examined which altcoins contributed most to the market’s rally and whether the broader uptrend is sustainable.
Stablecoin Supply Continues to Rise
The amount of notably over the past day. According to , $618 million worth of stablecoins are sitting in the market, yet to be deployed into crypto assets.
Given the bullish backdrop with rising prices and volumes, altcoins are likely to capture most of these inflows.
Although this supply doesn’t directly explain the past day’s surge, it suggests further upward momentum for crypto assets.
MemeCore (M), one of the top performers, contributed to the inflows by reaching an all-time high of $2.23 earlier today.
Hyperliquid (HYPE) also hit a new all-time high of $57.34 in the past day, underscoring growing investor appetite for altcoins.
Institutional interest is rising rapidly, with
