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What Is Crypto Market Cap?

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What Is Crypto Market Cap?

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. Market caps can be broken into categories primarily based on total value, often denominated in fiat currency like US dollars or euros. Just as there are large-cap companies, mid-cap companies, and small-cap companies in the business development document an overview world, there are also large-cap, mid-cap, and small-cap cryptocurrencies in the web3 world. A smart contract enables multiple scripts to engage with each other using clearly defined rules, to execute on tasks which can become a coded form of a contract. They have revolutionized the digital asset space because they have enabled decentralized exchanges, decentralized finance, ICOs, IDOs and much more.

  1. A high market cap combined with high trading volume can indicate a strong and stable asset, while a low market cap and low trading volume may suggest a less established or less popular asset.
  2. For example, an increase in token price will cause it to go up, while a decrease in token price will cause it to go down.
  3. The price per cryptocurrency token is determined by the current market value of a single unit of the cryptocurrency in your chosen currency, such as USD or EUR.
  4. It is important to understand the difference between these two metrics and consider both when evaluating digital assets.

We do not cover every chain, but at the time of writing we track the top 70 crypto chains, which means that we list more than 97% of all tokens. Here at CoinMarketCap, we work very hard to ensure that all the relevant and up-to-date information about cryptocurrencies, coins and tokens can be located in one easily discoverable place. From the very first day, the goal was for the site to be the number one location online for crypto market data, and we work hard to empower our users with our unbiased and accurate information. Market cap is highly susceptible to market dynamics, sentiment shifts, and price fluctuations, even if the total supply remains constant. It can change rapidly, both upwards and downwards, making it a somewhat volatile metric. This metric provides an alternative view of a cryptocurrency’s potential, using a more conservative estimate of a crypto asset’s value and factoring in future supply increases.

FAQs and misconceptions about market cap

Market cap can help institutional investors and traders assess the potential for growth and stability of a particular digital asset. Market capitalization (or market cap) is a metric used in both traditional finance and cryptocurrency markets. It represents the total value of a specific cryptocurrency and can be calculated by multiplying the current price per token by the total number of coins in circulation.

Concluding thoughts on market cap in crypto

In cryptocurrency too, this metric helps users to understand the relative size and growth potential of cryptocurrencies like BTC and ETH. Mid-cap cryptocurrencies have market caps ranging from hundreds of millions to a few billion dollars and include tokens like Polygon (MATIC), Hedera (HBAR), Aave (AAVE), and Algorand (ALGO). The decision to invest in this size type often comes down to seeking a balance between stability and potential for future growth. There are numerous cryptocurrencies in the market, each with its own market cap. Let’s take a look at the market caps and price charts of some popular cryptocurrency assets, including Bitcoin, Ethereum, and other popular coins and tokens (as of February 2024).

When asset prices move quickly in either direction and the market itself is relatively thin, it can sometimes be difficult to conduct transactions as might be needed. To overcome this problem, a new type of cryptocurrency tied in value to existing currencies — ranging from the U.S. dollar, other fiats or even other cryptocurrencies — arose. These new cryptocurrency are known as stablecoins, and they can be used for a multitude of purposes due to their stability. We calculate the total cryptocurrency market capitalization as the sum of all cryptocurrencies listed on the site. Each of our coin data pages has a graph that shows both the current and historic price information for the coin or token. Normally, the graph starts at the launch of the asset, but it is possible to select specific to and from dates to customize the chart to your own needs.

The total crypto market volume over the last 24 hours is $105.9B, which makes a 7.81% decrease. The total volume in DeFi is currently $10.42B, 9.84% of the total crypto market 24-hour volume. The volume of all stable coins is now $94.62B, which is 89.35% of the total crypto market 24-hour volume.

What are cryptocurrency exchanges and how do they work?

The status of the general economy can also affect a cryptocurrency’s market capitalization. To put it another way, you can think of market cap as a reflection of any given cryptocurrency’s popularity and significance in the crypto ecosystem at a specific time. The global crypto market cap is $2.66T, a 2.10% increase over the last day.

Does CoinMarketCap.com List All Cryptocurrencies?

This increased demand can lead to higher prices and, subsequently, a higher market cap. Classifying market caps into these categories can help differentiate between cryptocurrencies with different levels of risk and growth potential, while using different value how to get insurance broker license ranges. It is important to consider market cap in conjunction with other factors like the project’s technology, team, and adoption when making buying decisions. Thorough research and analysis are necessary to assess the overall potential of a cryptocurrency.

Learn all about Bitcoin halving events that greatly affect the inflation rate and supply-to-demand ratio of BTC, and occur every four years until 2140. Bitcoin’s dominance is currently 52.40%, an increase of 0.35% over the day. Learn about Lightning Network, one of the most promising scaling solutions for Bitcoin to make the blockchain cheaper and quicker. Understanding how it’s used in investment strategy can be helpful for those looking to navigate this complex landscape.

It is worth noting that market cap can vary depending on the source of data, as different exchanges may have slightly different prices for the same cryptocurrency. Additionally, some coins may have a maximum supply cap, which means the total circulating supply will not increase over time (if the cap has already been reached). In traditional finance, market capitalization allows you to assess a company’s size, value and potential for future growth.

Please remember that the prices, yields and values of financial assets change. We recommend seeking the advice of a professional investment advisor for guidance related to your personal circumstances. Price volatility has long been one of the features of the cryptocurrency market.

The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility. Lastly, and notably, market cap can be influenced by market manipulation and speculative trading. These activities can artificially inflate or deflate the market cap of a cryptocurrency.

This tool is for users who are looking to estimate market cap of such crypto assets. For example, an increase in token price will cause it to go up, while a decrease in token price will cause it to go down. Market sentiment can also impact market cap, as positive or negative news can affect investor decisions and asset prices.

Alternatives include calculating the total supply (factoring in assets that might be locked up or reserved). 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, CoinMarketCap first popularized looking at a coin’s market cap for ranking cryptoassets way back when. To know the market cap of popular crypto currencies you can use websites like CoinMarketCap where they provide enough data about a coin or a token. However all the new coins, tokens and ICOs are not listed on these data websites.

The below market cap calculator tool helps you to quickly calculate the market capitalization of a particular crypto asset. 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. Mid-cap crypto how to build a food delivery app like uber eats assets may offer more significant price appreciation compared to large-caps, but come with higher risk. Price fluctuations can significantly impact a cryptocurrency’s market cap, as even small movements in token price can lead to substantial changes in overall market capitalization.

In this article, we explore what market cap is, why crypto traders think it is important, how it relates to crypto asset valuation, and how to calculate it. Total supply, on the other hand, is the maximum number of cryptocurrency tokens that will ever be created or exist on the blockchain, including coins that are not in public circulation. Some cryptocurrencies, like Bitcoin, have a fixed total supply, while others may have mechanisms for creating additional tokens over time. For example, if a cryptocurrency has a price per token of $100 and a circulating supply of 1 million tokens, its market cap would be $100 million.