The total market capitalization of cryptocurrencies has exceeded $4 trillion for the first time, driven by a significant rise in alternative cryptocurrencies, particularly Ethereum, which surged by 22% in just five days. This increase follows the passage of a new U.S. legislative framework aimed at regulating stablecoins, which is expected to legitimize a market valued at $265 billion and projected to grow to $3.7 trillion by 2030. The momentum in the market is also reflected in substantial inflows into cryptocurrency exchange-traded funds (ETFs), with Bitcoin and Ethereum funds attracting billions in July alone.

The rise in cryptocurrency values has been led by altcoins, with Ethereum's recent performance setting the pace for the market. Bitcoin reached a record high of $123,205 earlier this week. The legislative changes in the U.S. are seen as a pivotal moment for the industry, providing a clearer regulatory environment that could encourage further investment and participation. As investors flock to cryptocurrency ETFs, the overall sentiment in the market is bullish, indicating a potential for sustained growth in the sector.