With the total market capitalization of cryptocurrencies expanding to about $3.78 trillion, whether the market is overvalued and has a bubble risk is a complex issue. On one hand, the continuous entry of institutional investors and the growing acceptance of cryptocurrencies in the mainstream financial world indicate that there is real - value support. On the other hand, the high volatility and speculative nature of the cryptocurrency market cannot be ignored. Some over - hyped projects may contribute to potential bubbles. Historical price - to - earnings ratios and market - capitalization - to - GDP ratios (if applicable) can be used for reference, but due to the relative newness of the cryptocurrency market, these traditional valuation methods may not be fully applicable.