First, you would compare the total market cap of the cryptocurrencies you’re interested in. That’s where the “weighting” in “weighted market cap strategy” comes in. For this reason, there is also no way to identify the real ratio of cryptos that are still functioning and those that have been lost. After all, cryptocurrency can disappear due to collapsed servers and network issues.

• Refers to the number of coins or tokens that currently exists and are either in circulation or locked somehow.
• As of 12 December 2023, its price was at £0.47, which demonstrates its volatility.
• While a high market cap can indicate a cryptocurrency’s maturity and stability, it also means that the asset may have already experienced significant growth.
• Now that we have an understanding of what market cap is and why it’s important, let’s examine some of the factors that can affect a cryptocurrency’s market capitalization.

Examples of Mid-Cap coins might include Chainlink (LINK), Cosmos (ATOM), and Tezos (XTZ). BNB (BNB 2.48%) is the official cryptocurrency of the Binance exchange, one of the top global crypto exchanges. It’s considered a utility token and serves a variety of roles within the Binance ecosystem. The capability of running smart contracts makes Ethereum a blockchain platform that developers can build on.

When crypto enthusiasts refer to the total supply of a cryptocurrency, they sometimes use the term fully diluted supply (FDV). A fully diluted market cap is calculated based on the value of all the coins in a cryptocurrency, not just the ones in circulation. https://coinbreakingnews.info/blog/gravity-bridge-staking-gravity-bridge-keplr/ One of the reasons Bitcoin (BTC) continues to do well is that its fully diluted supply is only 21 million. Currently, there are over two million of these coins left to be mined, as the total circulating supply of BTC is more than 18 million.

If that company goes bankrupt, they may also receive some payment once its creditors have been paid from its liquidated assets. Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. The more volume a cryptocurrency has, the more difficult it is to manipulate.

Solana’s native token SOL reached $82 on December 20th, marking a 13.8% increase and surpassing this lev… 4) Their lower liquidity can also pose challenges for investors wanting to buy or sell significant quantities. 3) Even small increments in adoption or positive news can result in significant percentage gains for investors. 2) They can be more susceptible to market swings compared to large caps. Especially during major economic downturns or significant industry-wide events. 3) Investors often gravitate towards them as they are deemed safer bets in an otherwise volatile market, given their established infrastructure, technology, and community support.

What is the total crypto market capitalization?

First, we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. StealthEX is an instant cryptocurrency exchange for limitless swaps. Our service is free from registration and does not store user’s funds on the platform.

• Cryptocurrency market capitalization resides in the arsenal of those tools.
• 1) The primary allure of Small-Cap Cryptos is their explosive growth potential.
• It is also used to measure the liquidity and overall value of a cryptocurrency.
• But remember that a crypto’s market cap is never a surefire indicator of stability, growth potential, or other future aspects of its performance.
• While a high Market Cap might suggest a more mature and possibly saturated market, a lower cap could indicate room for growth.

These currencies are far from stable, but their huge market capitalizations make them slightly more resilient to market forces. Mid-cap cryptos are more volatile but also have a lot more growth potential than large-cap cryptocurrencies. Small-cap cryptocurrencies are often extremely volatile and considered a highly risky investment, albeit sometimes with a lot of potential (short-term) https://cryptominer.services/how-to-buy-cult-dao-buy-cult-dao-cult-with-credit/ growth. However, these can often crash, even though there are exceptions, as with the infamous LUNA/UST downfall that happened in May of 2022. Before the crash, it ranked among the top 10 most valuable cryptocurrencies and yet went down pretty fast. Market caps for specific cryptocurrencies are also useful tools that can help investors gauge the size and stability of those projects.

Binance Coin (BNB)

Refers to the number of coins or tokens that currently exists and are either in circulation or locked somehow. This dynamic scenario adds excitement to the crypto landscape for both enthusiasts and investors. Cryptocurrency is a form of currency that exists solely in digital form, and is a high risk investment. Cryptocurrency can be used to pay for some onine purchases, or it can be held as an investment. AVAX has a market cap of £11 billion and currently trades at £31.98. Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types.

What is market cap? A guide to market capitalization in crypto

Cryptocurrency market capitalization is a simple, straightforward way of finding out how big a digital currency is — and it can help you make smarter investment decisions. In fact, https://bitcoin-mining.biz/what-is-the-value-of-bitcoin-2021/ CoinMarketCap first popularized looking at a coin’s market cap for ranking cryptoassets way back when. You can use market cap to compare and rank coins within the crypto market.

Is Crypto Market Cap an Important Metric?

3) Their technologies, governance structures, or adoption strategies might still be undergoing refinements, which could impact their price stability. 2) It is a broader user and investor base and a more extended track record of performance. But, it can be difficult to determine the correct supply information. If that data is incorrect, any further calculations will automatically be invalidated as well. This form of ledger technology is what’s behind cryptocurrencies and other tech trends. Ethereum (ETH 0.52%) is a blockchain platform that started development in 2013 and launched in 2015.

Solana Surpasses XRP, Securing the 5th Place: What Strengthened SOL Price?

The financial world can be complex and challenging, so I’m always striving to make it as accessible, manageable and rewarding as possible. Tax treatment depends on individual circumstances and may be subject to future change. Cardano also works like Ethereum to enable smart contracts and decentralised applications, which ADA, its native coin, powers. But the second asset has, in fact, doubled — providing a 100% return. Increase your knowledge in investment with our Investment Management Masterclass .

Is Crypto Market Capitalization an Important Metric?

When people invest in Bitcoin, to a large extent, they bet on a particular vision of the future. They believe the world will move to crypto, and Bitcoin appears to hold the strongest claim on that version of the future. While Americans await restocks, there’s good news for European customers as some units will be available. This achievement not only shows the popularity of Solana Mobile but also highlights the positive response from users. Cardano’s price peaked as of August 2021 at the approximate price of £2.06.