What is the Cryptocurrency Market Capitalization?
A blog about cryptocurrency market capitalization and the media’s effect on pricing.
I have been fascinated with cryptocurrency for some time now, but it was not until recently that my curiosity got the better of me and I dived into researching what the heck it actually is. For a number of years, I have been struggling to wrap my head around the concept of market capitalization in relation to digital assets such as Bitcoin and Ethereum.
What is market capitalization?
Market capitalization is a measurement of size, specifically applied to publicly traded companies. It is one way to rank the relative size of a company and involves multiplying the current stock price by the number of shares outstanding. For example, let’s say there are two companies (Company A and Company B) each with 100 million shares (of stock) outstanding. If Company A’s current stock price were $10 per share and Company B were $100 per share, then Company A would be valued at $1 billion and Company B would be valued at $10 billion. In this case, Company B would have a higher market cap than Company A because it is worth 10 times more than Company A; therefore, it has a larger market footprint than Company A.
Cryptocurrency Market Capitalizations
A look at the top 10 cryptocurrencies by market capitalization in 2017: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash, Litecoin (LTC), NEM, Dash, IOTA (MIOTA), Monero (XMR), and Ethereum Classic (ETC). As of November 14th 2017, the price of Bitcoin is USD 7,700.00.
The entire cryptocurrency market capitalization is currently at $180 billion dollars. The combined 24-hour trade volume is $7.5 billion dollars. There are over 1,300 cryptocurrencies out there today with new ones launching every day. Over $1 billion dollars has been raised through initial coin offerings in 2017 alone!
The Cryptocurrency Market Capitalization Explained
Cryptocurrency market capitalizations are calculated by multiplying the total number of supply coins by the current price of each coin. For example, an unknown cryptocurrency that has 2 million coins in circulation and a price per coin of $100 would have a cryptocurrency market capitalization of $200 million dollars.
The Cryptocurrency Market Capitalization Explained – A Look at the Top 10 Coins in 2017!
The Cryptocurrency Market Capitalization is the total value of all cryptocurrencies on the market at a given time. As crypto prices change constantly, so does the crypto market cap.
There are currently over 1,600 different cryptocurrencies in circulation, with a combined market capitalization of over $220 billion. The 10 largest cryptocurrencies by market capitalization account for roughly $175 billion of this total value.
The term “market capitalization” refers to the overall value of a company or stock. It’s calculated by multiplying the price of a single share by the total number of outstanding shares.
For example, if a publicly traded company has 1 million shares at $10 each, its market cap is $10 million.
In finance, the term “market cap” is used to refer to individual companies and stocks – but it can also be applied to cryptocurrencies and their networks as well. While not an entirely accurate measure of success, it can be useful for comparing different cryptocurrencies against one another over time.
If you’re looking for accurate cryptocurrency price predictions and analysis, make sure to follow our blog where we post regular updates on the latest news and trends in cryptocurrency markets.
Cryptocurrency Market Capitalizations or “Crypto Market Cap” for short is a website that provides information about the current market cap of various cryptocurrencies. In addition to market cap, the website provides several other pieces of information including the circulating supply, total supply and maximum supply where applicable.
The site itself is maintained by CoinMarketCap, a company who created the site to provide accurate and up-to-date market data on all of the major cryptocurrencies. The site was started by Brandon Chez in 2013 as a hobby project but quickly grew into one of the most popular resources for cryptocurrency information.
The site receives millions of unique visitors every month, making it one of the most popular websites on the internet with regards to cryptocurrency data. The company uses a variety of sources to determine the data that is displayed on the site including public API’s from exchanges and other third party sites where applicable.
Cryptocurrency Market Capitalization or “Crypto Market Cap” for short is a widely used metric that is commonly used to compare the relative size of different cryptocurrencies. On CoinCodex, market cap is the default metric by which we rank cryptocurrencies on our frontpage. We also track the total cryptocurrency market cap by adding together the market cap of all the cryptocurrencies listed on CoinCodex. The total market cap provides an estimate on whether the cryptocurrency market as a whole is growing or declining.
The formula for calculating the market capitalization of a particular cryptocurrency is relatively simple and involves just two steps:
Multiplying the Price of a Single Unit by the Total Number of Units in Circulation
For example, let’s calculate the market cap of Bitcoin using data from January 2, 2019:
The price of 1 BTC = $3,825
The circulating supply of BTC = 17,262,200
Market capitalization = $66 billion
You may have noticed that cryptocurrency prices are quoted in two different ways. Some prices are quoted as a unit price of 1, while others are quoted as the price of 1 BTC (or ETH). This is called the cryptocurrency market capitalization. The market capitalization of a coin is a measure of how much it would cost to buy all the coins in circulation. In this article I will look at the different types of cryptocurrencies and then explain how to calculate market capitalization.
There are three main types of cryptocurrencies:
• Currencies: These are currencies like Bitcoin and Ethereum that you can use to buy things. They are sometimes called “mined” because they are produced by computers. These coins are not tied to any government or central bank and their value fluctuates based on supply and demand.
• Commodities: Commodities like gold and silver are also mined but they are not currencies. Instead they serve as a store of value, meaning they can be used to pay for things over time. For example, if you buy something using gold today, you can use that gold later to pay for other things.
• Stocks: Stocks represent ownership in a company and their value goes up or down based on how well the company
The cryptocurrency market and its underlying technology are complicated subjects. Which is why we should always be skeptical when the media attempts to turn a complicated subject into a simple one. Like the current debate around bitcoin and other cryptocurrencies that have been raging for the past week or so.
The media has been turning bitcoin into a story about price, and that’s the only story many people are interested in. Even if you’re not interested in bitcoin, there’s still a good chance you’ve asked yourself, “So what’s this bitcoin thing anyway?” And chances are you didn’t ask yourself that question because you were curious about how it works; you asked yourself that question because you heard it was worth $10,000 per coin, and maybe now it’s worth $8,000 or maybe now it’s worth $16,000. And you want to know if it was ever worth more than $16,000 or if it will ever be worth more than $16,000.
The mainstream media is happy to feed this obsession. The story they want to tell is one of price going up and down. (Which is also why they won’t tell the story of someone putting their life savings into bitcoin.) “Should I invest in bitcoin?” is a question almost as popular as “