What Is Crypto Market Cap?
Market Capitalization or you can say the market cap is the total value of all the shares of any company.
In the case of cryptocurrency, the market cap is calculated by multiplying the total circulation supply of cryptocurrency with the market price of the single coin.
Crypto Market Cap = Total Circulating Supply × Price
For Example, let’s imagine we have 2 Cryptocurrency ABcoin and CDcoin. we have to find the market cap of these Cryptocurrencies.
The first cryptocurrency “ABcoin” has a total circulation supply of 80,000 and its market price is $2. The market cap of ABcoin will be $160,000.
Let’s make it easier with our 2nd imaginary cryptocurrency “CDcoin” let say it has a total circulation supply of 10,000 and its market price is $1. 10,000 multiple by 1 is 10,000. So the market cap of CDcoin is $10,000.
Cryptocurrencies are classified by their market cap into three different categories:
To be in this category a cryptocurrency must have a market cap of more than $10 billion. Cryptocurrency like bitcoin and ethereum comes under this category. Large-cap cryptocurrencies are believed to be safe for investment.
Cryptocurrencies that have market caps between $1 to $10 billion are considered mid-cap cryptos. Mid-cap coins have more growth potential than large caps but don’t invest blindly in any mid-cap coin.
Cryptocurrencies in this category have a market cap of less than $1 billion. Investing money in small-cap coins is too risky but If you play your card right then you can earn a good profit from small-cap crypto.
Why Is Crypto Market Cap Important?
Market Cap helps investors to compare the total value of Cryptocurrencies with each other. Investors get an idea to buy the safest coin for them by comparing market cap of one cryptocurrency with another cryptocurrency.
Market cap can indicate the growth potential of a cryptocurrency and
With only Market Cap, the ranking of Cryptocurrency can decide. It also determines the popularity of crypto.
What is the total value of the crypto market?
10 crypto which has highest market cap:
Market Capitalization: $617.35B
Market Capitalization: $237.17B
Market Capitalization: $62.23B
4. Binance Coin
Market Capitalization: $48.17B
Market Capitalization: $41.89B
Market Capitalization: $28.87B
Market Capitalization: $27.42B
8. USD coin
Market Capitalization: $26.17B
Market Capitalization: $14.39B
Market Capitalization: $11.46B
Well, the market cap of cryptocurrency keeps on changing you can see the going on market cap of any crypto on CoinMarketCap.
CoinMarketCap is the best website and most popular on which you can see the market cap of any cryptocurrency.
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