Market trends and capitalization

All S&P 500 companies are listed on major US stock exchanges such as the New York Stock Exchange and NASDAQ. The S&P 500 index value reflects their total capitalization. The S&P 500 competes in popularity with the Dow Jones Industrial Average and is deservedly called the barometer of the American economy.

As we can see on the S&P 500 chart, the capitalization of the US stock market has more than doubled over the past 5 years, excluding dividends paid.

The RTS-2 stock exchange index is a composite, free stock exchange index, which is an official indicator of the Russian stock market, which includes shares of small and medium capitalized companies (second tier stocks). Basically, such shares are at the disposal of companies that are not a national brand, although they have great prospects, profit and capitalization, for example, PJSC AVTOVAZ, PJSC Promsvyazbank, PJSC Rostelecom, PJSC Irkutskenergo and others.

The RTS-2 chart shows that in 2020, despite the losses at the beginning of the year, the index recovered its growth and renewed its maximum, which indicates a significant investment potential of the second tier companies.

 

Cryptocurrency market

The history of the first cryptocurrency

On October 5, 2009, Bitcoin gets its first rate against traditional currencies. New Libert Standard set a rate of $ 1 for 1,309 BTC.

On May 22, 2010, a historic event took place with the purchase of pizza for 10 thousand bitcoins (about $ 25), which today is almost $ 3 million.

On February 9, 2011, 1 bitcoin was worth $ 1, after which there was a long decline.

After that, it recovered for more than a year and a half, returning to the $ 31 mark only by February 2013. By November of the same year, the price of the cryptocurrency had grown almost 30 times and exceeded $1000.

In March 2016, the Japanese Cabinet of Ministers recognizes bitcoin as one of the varieties of virtual currency that can be used to pay for goods and services, like ordinary money.

In the same month, Bidorbuy, the largest online trading platform in South Africa, began to accept payments in cryptocurrency.

On January 5, 2017, Bitcoin traded at $1150, after which it began to rise sharply. This happened against the backdrop of the growing popularity of a new method of attracting funding - ICO.
At the beginning of September, bitcoin traded at $ 5 thousand, and on December 6, its value reached $12 000. In the next few days, it continued to grow strongly and on December 17, 2017, at its peak, it was approaching  $20 000. The next day after that, the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (Cboe) added bitcoin futures, and the value of the cryptocurrency began to decline sharply.
On December 22, 2017, the bitcoin rate fell below $11 000, and on February 6, 2018, it dropped to a local minimum of $ 6 thousand.In 1.5 months, the cryptocurrency lost 70% of its value and entered the stage of a protracted correction.

On December 15, 2018, the asset price dropped to $ 3.2 thousand, and the market sentiment was negative.

In the summer of 2019, the growth of the bitcoin rate accelerated amid Facebook's announcement of the launch of its own cryptocurrency Libra. But this initiative was immediately opposed by financial regulators around the world, so the company had to revise its plans and switch to a model with the release of stablecoins pegged to the exchange rate of national currencies.

At the beginning of 2020, bitcoin again began to demonstrate the properties of a defensive asset. On February 3, the value of the cryptocurrency reached a local peak of $ 10.5 thousand, but then began to fall sharply against the background of a general decline in financial markets.
In December 2020, bitcoin has risen in price by almost 130% and updated its all-time high at around $ 23.8 thousand.

January 3, 2021 - Bitcoin reaches a new high of over $34,800.

March 13, 2021 - The bitcoin price has risen in just 7 days by 25% to $ 60,021.

As of July 14, 2021, $32,860 is offered for one unit of cryptocurrency, the capitalization of the currency approached $ 688 billion, according to the CoinMarketCap trading platform.

Ethereum - the era of smart contracts and the DeFi boom

August 7, 2015 - On this day, ETH was added to the Kraken crypto exchange and was priced at $ 2.77 per coin.

On January 11, 2016, the Ethereum price breaks the $ 1 mark again and rushes up. Within two months, the price of Ethereum is growing rapidly against the background of information about the previous replacement of the network protocol with a more stable version (Homestead) and reaches the first serious maximum of $ 15. At this moment, the capitalization of Ethereum goes beyond $ 1 billion for the first time.

Ethereum reaches $ 45 in March 2017. Daily trading volumes of ether reach $ 450 million. On May 18, ETH is added to the AVATRADE exchange floor - in less than a month its price quadruples (June 12, 1 ETH = $ 400).

The era of ICO, which provoked the rapid growth of the Ethereum exchange rate in 2017, has come to an end. Throughout 2018, thousands of ICO projects sell their savings in ETH. The fall slows down in early September at around $ 180 and consolidates between the levels of $ 200-300 until mid-November.

In the first week of January 2019, Ethereum returns to the 2nd position in the CoinMarketCap ranking, and its cost reaches $ 160.

2020 can be considered a preparatory stage for serious growth, which began in 2021. At this stage, the maximum price that Ethereum has reached was just over $ 290.

A new wave of growth began in August - Ethereum grew from $ 240 to $ 490, approaching its all-time high of $ 1400.

On January 1, 2021, about $ 730 was given for one broadcast, and a week later the rate was $ 1190. But the second cryptocurrency did not stop there and continued to grow.

On May 12, 2021, it reached a maximum above $ 4300 per 1 ETH, followed by a correction of the $ 2000 support line.

According to CoinMarketCap, as of July 14, 2021, the price of the second cryptocurrency is $ 2010, and the capitalization exceeded $ 230 billion.