Crypto Prices, Charts and Cryptocurrency Market Cap

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. A cryptocurrency market cap, short for market capitalization, is that cryptocurrency’s total value. It’s calculated by multiplying the current price of the cryptocurrency by the circulating supply, meaning the number of coins currently available. A stablecoin is a crypto asset that maintains a stable value regardless of market conditions. This is most commonly achieved by pegging the stablecoin to a specific fiat currency such as the US dollar.

Since market caps are based on the prices of cryptocurrencies, they change constantly. Investors in small-cap crypto are often looking for exponential growth but should be prepared for significant price volatility and potential significant risks. 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.

Economic factors

If you want to buy a particular cryptocurrency but don’t know how to do it, CoinCodex is a great resource to help you out. Find the cryptocurrency you’re looking for on CoinCodex and click the „Exchanges“ tab. There, you will be able to find a list of all the exchanges where the selected cryptocurrency is traded. Once you find the exchange that suits you best, you can register an account and buy the cryptocurrency there. You can also follow cryptocurrency prices on CoinCodex to spot potential buying opportunities.

  • The crypto community is also waiting to see whether the SEC will appeal the landmark ruling that Ripple is not a security.
  • Conversely, negative news, security breaches, or regulatory crackdowns can all erode investor confidence, leading to a drop in prices and market cap.
  • As explained in the previous section, market capitalization can be used for investment strategies by dividing by the market capitalization category.
  • The total crypto market volume over the last 24 hours is $70.19B, which makes a 16.37% increase.
  • Although there is no standard figure for determining market capitalization classification, a common reference for determining low-cap assets is if it’s below $1 billion US dollars.

Once a block is added to the blockchain, data contained within it cannot be changed, unless all subsequent blocks are changed as well. The circulating supply of a cryptocurrency is the amount of units that is currently available for use. There is a rule in the Bitcoin code which says that only 21 million Bitcoins can ever be created.

Even though market cap is a widely used metric, it can sometimes be misleading. A good rule of thumb is that the usefulness of any given cryptocurrency’s market cap metric increases in proportion with the cryptocurrency’s trading volume. Crypto 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.

Is market cap the best way to measure the popularity of a cryptocurrency?

As explained in the previous section, market capitalization can be used for investment strategies by dividing by the market capitalization category. The image above gives us information about how market cap intersects with risk and potential profit. On the other hand, investment risk is inversely proportional to the market cap of an asset. Market cap is based strictly on coin price and circulating supply, while fundamental value is based on other factors like financial performance. It is important to understand the difference between these two metrics and consider both when evaluating digital assets.

FAQs and misconceptions about market cap

Mid-cap cryptos are more volatile but also have a lot more growth potential than large-cap cryptocurrencies. Coinmarketcap is currently the most popular website to keep track of market cap of cryptocurrencies and to get an overview of how popular each currency is. It also offers the crypto world’s most popular index for all relevant financial metrics for cryptocurrencies. Tether is controversial since it has faced scrutiny about its reserves and legal issues. Despite its reputation, it’s the largest stablecoin and the cryptocurrency with the highest trading volume.

Since market caps are based on cryptocurrency prices, they’re constantly changing. Generally, cryptocurrency price data will be more reliable for the most popular cryptocurrencies. Cryptocurrencies such as Bitcoin and Ethereum enjoy high levels of liquidity and trade at similar rates regardless of which specific cryptocurrency exchange you’re looking at. A liquid market has many participants and a lot of trading volume – in practice, this means that your trades will execute quickly and at a predictable price. In an illiquid market, you might have to wait for a while before someone is willing to take the other side of your trade, and the price could even be affected significantly by your order. Circulating supply — which looks at the number of coins available to the public — isn’t the only method for calculating a crypto market cap.

Price per cryptocurrency token

Fully Diluted Value or FDV is the total value of a crypto project assuming all of its tokens are in circulation. FDV is very useful to see the value of a project if all of its tokens are in circulation. 💡 For example, the current price of Bitcoin is $19,283k and the circulating supply is 19,188,925.

Cryptocurrencies that reach consensus through mining are referred to as Proof-of-Work coins. However, alternative designs such as Proof-of-Stake are used by some cryptocurrencies instead of mining. Cryptocurrencies such as Bitcoin feature an algorithm that adjusts the mining difficulty depending on how much computing power is being used to mine it.

A rising market cap is a sign of a bull market when most people feel good about crypto, and more investors buy it or add to their existing positions. To compare the value of different cryptocurrencies, you should look at their market caps, not their prices. Most of the time, cryptocurrencies with oversized market caps are more stable.

Thousands of altcoins have been created so far following Bitcoin’s launch in 2009. We arrive at this figure by multiplying the price of 1 BTC and the circulating supply of Bitcoin. The Bitcoin price is currently $43,624 and its circulating supply is 19.58 million. If we multiply these two numbers, we arrive at a market cap of $853.98 billion. There’s a lot of debate about how much weight should be placed on the size of the cryptocurrency market. Some critics claim that it’s an unwelcome legacy of the stock market — leading to misguided investment decisions and contributing to substantial levels of fear and greed.