Crypto Market Reaches $4 Trillion With XRP, Solana, Dogecoin, and Cardano Leading The Resurgence

The global cryptocurrency market capitalization has exceeded $4 trillion in a broad rally led by Solana and Doge. While several factors contribute to the rally, pundits note that rising institutional custody growth and the possibility of interest rate cuts in September are stoking the embers of a rally.

A Meteoric Rally For Crypto Assets

After a poor start to September, cryptocurrency prices have reversed the trend to post impressive figures in a strong rally. According to data from CoinMarketCap, the global cryptocurrency market capitalization sits at $4.07 trillion, while the 24-hour trading volume is inching toward the $200 billion mark.

Bitcoin, the largest cryptocurrency, currently trades at $115,000 after gaining nearly 2% over the last day. While Bitcoin notched modest gains, Ethereum recorded a 4% rally over 24 hours to trade at $4,645, reversing its losses from Q1 and Q2.

Meanwhile, XRP is continuing its strong streak with a 2.23% growth spurt to settle at $3.11 as it eyes a new all-time high. XRP sits as the third-largest cryptocurrency by market capitalization after flipping Tether’s USDT, with pundits tipping the rally to continue for the asset in the near term.

Solana emerged as the biggest gainer during the rally, racking up over 6% over the last day, underscored by a burst of network activity. SOL is currently exchanging hands at $243 in a rally that has seen it surpass BNB to become the fifth-largest cryptocurrency in terms of market capitalization.

Despite weathering the storm from the SEC’s delayed decision on Franklin Templeton’s spot Solana ETF, a wave of institutional purchases propped up SOL’s price. Galaxy Digital and BIT Mining announced SOL purchases with daily trading volumes of $10 billion.

Meanwhile, DOGE is riding the wave of double-digit gains over the last 24 hours, gaining 10% to trade at $0.28. In the same window, AVAX recorded an 8% surge to settle at the $30 mark while ADA and BNB pulled in 2% respectively.

Why Are Prices Surging?

Right off the bat, institutional inflows via ETF demand have played a central role in the meteoric crypto market rally. Crypto ETFs recorded inflows of over $1 billion over the last day, led by Bitcoin and Ethereum, while the possibilities of new SEC approvals have stoked optimism in the market.

While BTC and ETH are dominating ETF inflows, several altcoins have recorded impressive rallies with DOGE, SOL, and XRP notching over 10% gains on the 7-day charts. The altcoin dominance has hit 29.32%, its highest level since 2024, hinting at rising investor appetite.

Macroeconomic sentiment is also playing a key role in the crypto markets’ resurgence, with investors scanning the horizon for an incoming Fed rate cut. According to the CME FedWatch tool, the probability of a rate cut to 400-425 bps at the next FOMC meeting is pegged at 93.4%.