The crypto market cap is a useful metric for assessing the relative size of a cryptocurrency. Think of it like the market capitalization of a publicly traded company: the higher the “market cap”, the more valuable the company (on paper). The same goes for cryptocurrencies.
Crypto Market Cap: An Introduction
There are hundreds of crypto currencies in existence, and many more are being created every day. It’s not easy to know how to value these coins, but comparing their market caps can provide some insight.
A cryptocurrency’s market cap is equal to the total supply of coins multiplied by the price per coin. For example, if there was only 1 bitcoin in circulation and it was trading at $10,000 USD, then Bitcoin’s market cap would be 1 BTC x $10,000 USD = $10 billion USD.
It’s important to note that just because something has a high market capitalization doesn’t mean it’s necessarily more valuable than something with a lower valuation. This is especially true in the cryptocurrency space where many coins have inflated valuations due to low liquidity and limited information.
That said, when comparing two similar projects with similar valuations and circulating supplies, looking at which one has a
The crypto market cap is a handy tool for gauging the value of various cryptocurrencies. It can also be used to compare the size of one cryptocurrency to another.
The crypto market cap is the total value of all the cryptocurrencies in circulation at any given moment. In order to get that figure, you need to multiply the total number of coins in circulation by the current price of each coin.
For example, if one coin costs $10 and there are 10 million coins in circulation, then that currency has a market cap of $100 million.
The crypto market capitalization is a useful metric for determining the relative size of a cryptocurrency. One could say it indicates how “big” the network is. This is not unlike traditional market capitalization, which is often described as the total value of all shares in a company, or how big the company is. However, there are some key differences between traditional and crypto market cap that are worth noting.
Traditional Market Capitalization
The traditional stock market has been around for centuries. It’s highly regulated, with laws that help to protect investors from fraud and manipulation. There are also strict rules regarding who can participate in the stock market, and what can be listed on an exchange. These laws create a higher degree of trust in the overall system, allowing investors to buy and sell stocks with confidence.
Crypto Market Capitalization
The cryptocurrency market lacks most of these protections. There’s no guarantee that you’ll be able to buy or sell your coins at any given time. In addition, many coins have very low trading volume, meaning you may not be able to trade them at all! The lack of safeguards means that investors need to be more cautious about their investments.
How Is Crypto Market Cap Calculated?
Traditional market capitalization is calculated by multiplying a company’s total
The total market capitalization of the cryptocurrency market has now reached $100 billion for the first time in history.
The crypto market cap has grown tremendously since the beginning of the year, from an initial amount of around $18 billion on January 1st to the current amount of over $100 billion. This means that there has been an increase of almost 500% in just nine months.
In the beginning of 2017, Bitcoin was dominating over 85% of the total cryptocurrency market cap. Today, this share has dwindled to around 50%, with close to 1000 alternative coins and tokens in existence, some more legitimate than others.
At the time of writing Bitcoin’s market value is $56 billion, while Ethereum is at $26 billion and Ripple at $9 billion, making up 90% of the total cryptocurrency market cap.
This enormous growth has had a major impact on mainstream media coverage as well as public interest in cryptos and blockchain technology.
Cryptocurrency Market Capitalizations | CoinMarketCap
Crypto market cap charts The charts below show total market capitalization of Bitcoin, Ethereum, Litecoin, XRP and other crypto assets in USD. You can also compare market cap dominance of various cryptocurrencies.
Total Crypto Market Cap and Volume
Source: coinmarketcap.com
The market cap of a cryptocurrency is simply the total amount of money invested in it. Therefore, when you see a cryptocurrency with a market cap of $100 million, this means that all of the investors in that particular coin have invested $100 million in it.
It is important to note that the market cap can be manipulated by the company behind the coin. For example, if a company decides to issue 1 billion tokens at $0.01 each, they will instantly have a market cap of $10 million.
The manipulation doesn’t stop there. Let’s say after issuing all those tokens, only 1% are sold (meaning 99% are held by the team behind the project) and at some point some people decide to invest in it and buy 100% of all tokens available for sale for $1 each (meaning 99% of all tokens are now held by traders and not the company).
After that purchase, the new crypto will suddenly have a market cap of $1 million even though nothing has changed about its real value ($0.01) or what was really invested into it ($0.01). This is called an “artificial” market cap and is achieved by simply creating lots of tokens and then buying them up at low prices among other techniques.
What is market cap? Market cap stands for the market capitalization of a particular cryptocurrency. It’s typically used as a way to show the size of a company and its ability to generate profit based on its total assets. The metric is calculated by multiplying the price of a crypto by the circulating supply of that coin. For example, if there was one crypto coin priced at $10 and it had 10 million coins in circulation, then its market cap would be $100 million.
The figure is important because it gives you a snapshot of that crypto’s total value as opposed to just looking at the price per coin. This can give you an idea of how much growth potential there is for that coin and where it is in its life cycle.
For example, if you look at the whole cryptocurrency market, its total market cap peaked at around $800 billion U.S. dollars (USD) in January 2018 before falling to around $150 billion USD as of April 2018. That shows you there was a lot of growth potential initially but most of those gains have already been realized, which indicates this industry could be close to maturity.