Cryptocurrency market cap capitalization
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Content:
- What Is The Cryptocurrency Market Capitalization?
- Bitcoin Market Cap
- Crypto Market Capitalization – How to Calculate, Meaning, Prediction
- Why Market Capitalization is Not the Best Metric To Evaluate Crypto?
- How to analyze cryptocurrency market cap
- Bitcoin and Ethereum Market Cap Could Surpass Gold: Report
- Total Value of the Entire Cryptocurrency Market
What Is The Cryptocurrency Market Capitalization?
There are many terms you should know in the world of cryptocurrency. One of the most important you should familiarize yourself with is coin market capitalization, or coin market cap. This is a useful metric to have when attempting to know the true value of a cryptocurrency.
If you visit a site like Coin Market Cap or Coin Gecko , you can see the market valuation of a digital asset and where it ranks in comparison to other assets. So, what does market cap mean in crypto? And how can you use it to make informed investment choices? We'll answer these questions and a few more below. That's it.
That's all there is to it. It's the product of a coin's current price and the total number of coins in circulation. Pretty straightforward, right? The market capitalization of a coin can be an important indicator of how well a cryptocurrency is performing, but don't be fooled. The market cap is not the same as a project's inflow. It does not accurately depict how much money is in the market for a given coin.
This type of thinking often causes problems for investors unfamiliar with the term, especially since it involves the price of the coin. The reality is that even a small variation in price can significantly impact market capitalization.
Large market cap, mid market cap, and small market cap are terms used in both the stock market industry and the world of digital assets. If you're looking at these terms as they relate to the stock market, a corporation like Google or Apple is considered large cap, since they have many shares and trade at a high price.
Along the same lines, it would be like comparing Bitcoin, which has the largest market cap in all of crypto, to an altcoin project that just launched, which in all likelihood is going to be a small-cap digital asset.
At the time of writing in June , the top nine cryptocurrencies in the market currently rank as large cap. These are all projects that have a proven track record and strong security within the crypto space.
Digital assets that fall in the large-cap category typically offer high liquidity. This means you're likely to find these digital assets on almost any crypto exchange with high trading volume. Additionally, you can often trade these cryptocurrencies for fiat currencies, since they offer so much market value. While large-cap coins are less volatile than their mid- and small-cap counterparts, they're still more volatile than traditional stocks.
This list has grown extensively over the past few years. As of June , 40 of the top 66 digital assets are considered midcap based on cryptocurrency market capitalization, and it won't be surprising if a few more join that list this year.
Many investors view midcap coins as better options because of their growth potential. Even though they are not as established as large-cap cryptocurrencies, midcap projects typically have yet to realize their full promise.
Some investors view midcap opportunities as better investment decisions since the possibility exists that they could turn into large-cap projects. These cryptocurrencies may not have the resources or the longevity of other projects in the crypto market.
Due to the amount of time they've been in the market or their security, small-cap companies are considered higher risk than large-cap or midcap projects. There are a few small-cap projects that you may have heard of, though. There are several reasons investors avoid small-cap coins, including high volatility, low liquidity, and high risk. Small market cap coins are more vulnerable to significant price fluctuations. Just one buy or sell order can make the price of a small-cap coin skyrocket or bottom out.
Additionally, since these digital assets are less liquid, it's harder to find exchanges that allow you to buy, sell, or trade them.
Unlike traditional financial assets like bonds or stocks, cryptocurrencies are mostly unregulated. Because of this, using the total market cap of a coin can be a good indicator of a project's presence in the industry. That doesn't mean it's the only tool you should use to determine the potential of an asset.
For example, there are more than 46 billion XRP tokens floating around in circulation. By comparison, BTC has a little more than 19 million. Unfortunately, many novice investors choose to use market cap as a way to evaluate a cryptocurrency, which has resulted in significant losses for some. Like many tools, a cryptocurrency's market capitalization is best used in conjunction with other instruments. Using it as the only indicator for investing in a digital asset isn't wise, but it can give you a solid idea of a coin's relevancy.
Because the DeFi sector is still in its nascent stages, most of the cryptocurrencies in this market will rank in the midcap or small-cap tier of market capitalization. However, as this sector of the crypto industry continues to grow, so too does the total market capitalization of many of these projects. It won't be long until one of the following joins the ranks of the large-cap projects. You'll be hard-pressed to find another decentralized oracle network used as much as ChainLink. This project inputs real-world data into smart contracts that reside on its blockchain.
As a result, there are unprecedented amounts of information moving between decentralized apps. Due to the rising popularity in DeFi, ChainLink has shown significant growth — so much so that it can now fund other decentralized projects that want to join the ChainLink ecosystem. Currently, ChainLink sits at number two on the market cap list for DeFi projects and number 14 for all cryptocurrencies. Another popular DeFi project that's getting a lot of traction is the crypto lending platform Aave.
This non-custodial liquidity protocol gives users a way to both borrow on digital assets and earn interest. Additionally, users can stake the platform's native coin — AAVE — to contribute to both the performance and the stability of the ecosystem.
The coin also offers plenty of benefits. Not only will you get discounted fees when using the platform, but AAVE also offers plenty of use cases that appeal to the crypto crowd, including crypto arbitrage , collateral swap, and self-liquidation. Aave is also one of the largest DeFi cryptocurrencies on the market. It ranks number five on the list of decentralized cryptocurrencies and number 29 overall. If you're looking for an alternative to Ethereum-based decentralized projects, you might want to check out PancakeSwap.
This decentralized exchange resides on the Binance Smart Chain, letting users swap BEP tokens at their convenience. PancakeSwap offers users its CAKE token, which can be staked in one of the many liquidity pools the platform offers.
The low fees and bevy of options available on PancakeSwap has steadily driven the popularity of the coin upward. It sits in the number seven slot on the list of DeFi coins and in the number 35 slot on the overall rankings.
Market capitalization is an important piece in evaluating any cryptocurrency. It shows how relevant a coin is and how much the industry values it. However, it's not the only tool at your disposal. There are many other methods and options available. This includes exciting capabilities within the world of decentralized finance. For example, many platforms now offer ways to stake cryptocurrencies or use them to yield farm.
Unagii is one such platform. With Unagii, you can put your crypto to work for you. Plus, with its vault technology, your robo-adviser will automatically harvest the best yields. No matter how you choose to invest or evaluate your digital assets, don't neglect its market cap. Whether you're considering large-cap, midcap, or small-cap coins, the market cap will provide insights into making an informed, educated investment decision.
We're a distributed team of dedicated strategists and engineers with a mission to redefine the digital asset yield experience. What is coin market capitalization?
Bitcoin Market Cap
Cryptocurrency market capitalization through Jan. The last crypto bull run in saw a similar pattern — a swift, parabolic price pump, then a steep drawdown within subsequent weeks. While the drawdowns vary in magnitude with each subsequent crypto cycle, it appears the " supercycle" hypothesis — that crypto is on the verge of mass adoption — floated by some traders last year is dead in the water. For some traders, the emergence of major altcoins in the current cycle appears to be providing some reprieve from the sea of red. As the cryptocurrency space matures, bitcoin and ether dominance has been on the decline, meaning altcoins are making up a larger chunk of the broader cryptocurrency market cap.
Crypto Market Capitalization – How to Calculate, Meaning, Prediction
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Why Market Capitalization is Not the Best Metric To Evaluate Crypto?
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How to analyze cryptocurrency market cap
Not surprisingly, the prices for 8 of the top 10 most valuable cryptocurrencies all cratered since yesterday. Ethereum Classic and Ontology were the only two virtual coins that managed to hang tough during this week's sell-off. Source: WorldCoinIndex. Market observers are attributing the recent price drop to a decision by Google to ban cryptocurrency advertising on its platform. The ban takes effect in June.
Bitcoin and Ethereum Market Cap Could Surpass Gold: Report
Cryptocurrencies are decentralized electronic currency or virtual currency. An investor can buy cryptocurrencies only online, from any crypto exchange. Hence, you can pay for the coins via online mode. Here are the top 5 cryptocurrencies, globally, those that have the highest market capitalization. It is important to note that the price, market capitalization, fully diluted market capitalization, and volume are variable with time. This coin was first described in by a pseudonym named Satoshi Nakamoto, and later in the next year, it was launched in January.
Total Value of the Entire Cryptocurrency Market
Cryptocurrency market capitalization is a way in which the various contenders can be ranked based on size, calculated by multiplying price by the supply of the currency that is in circulation. Market capitalisation is essential for determining the size of a cryptocurrency, which some professionals argue is an overlooked statistic when so much attention is often unnecessarily paid to price alone. Measuring a cryptocurrency on this basis is also a better indication of potential growth, the factor that is of prime interest to investors in digital currency. To help you get to grips with the notion of cryptocurrency market capitalization, we have listed the top five currencies based on this characteristic, also including price and the number of units in circulation.
In the world of cryptocurrency, bitcoin is still the Big Kahuna, but things are looking are little shaky. Next up is BNB. Ethereum, solana and cardana and others crypto like polkadot that are catching up with bitcoin because their platforms are used for non-fungible tokens NFTs , decentralised finance DeFi and other use cases. Polkadot, an open source, blockchain platform and cryptocurrency that allows for distributed computing, was the eighth largest.
It has been boosted by a resurgent bitcoin, which experienced a fresh all-time high in October, however it is the performance of other leading altcoins that is currently fuelling the climb. The world of traditional finance has remained largely resistant to cryptocurrencies, with only some major banks in the US and Europe offering crypto trading services to institutional clients. Following its latest price high, Ethereum now ranks above every leading global bank in terms of market cap, as well as other traditional finance giants like Mastercard and Visa. Registration is a free and easy way to support our truly independent journalism. By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists. Join thought-provoking conversations, follow other Independent readers and see their replies. Want to bookmark your favourite articles and stories to read or reference later?
Home » Stock » Coin Market Capitalization. Last Updated -- October 15th, Coin Market Capitalization can be defined as an easy way of knowing how big any particular cryptocurrency is. Market capitalization is one of the most important factors when it comes to investing in the share market.
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