Bitcoin is the oldest and most established cryptocurrency, and has a market cap that is larger than all of the other cryptocurrencies combined. Bitcoin is also the most widely adopted cryptocurrency, and is accepted by practically all businesses that deal with cryptocurrency. We arrive at this figure by multiplying the price of 1 BTC and the circulating supply of Bitcoin. The Bitcoin price is currently $ 66,586 and its circulating supply is 19.70 million. If we multiply these two numbers, we arrive at a market cap of 1,312.02 billion.

Ethereum ETF Outflows and Market Pessimism

Their purposes range from being a joke to a coin that pays for transactions on a distributed and global virtual machine. Where they will all end up is anyone’s guess, but the years that have passed since they first appeared https://cryptolisting.org/ seems to suggest they aren’t going anywhere soon. On July 22, 2023, MATIC traded at $0.76 and had a market cap of $7.09 billion. On July 22, 2023, TRX had a value of $0.085 and a market cap of $7.64 billion.

How Do We Calculate the Cryptocurrency Market Cap?

Polygon (MATIC) was initially developed as a layer-2 solution to address the issues with Ethereum network congestion and traffic. Recent innovations have allowed it to become a multi-chain system where blockchains can work together using Ethereum’s virtual machine. If Bitcoin were a nation, it would rank as the 27th highest user of electricity, as of July 2024, according to the Cambridge Bitcoin Electricity Index. “Some are used in gaming environments to earn rewards in a game, while others facilitate payments. Some are designed for cross-border remittances … some are designed for micro payments.” Perpetual futures are like futures (derivative contracts or agreements to buy or sell a commodity at a spec…

Bitcoin Size Versus Altcoin Risk

Bad actors exploit small market cap coins by controlling enough of the total supply to create large price movements in one direction or another. In the early, shady days of the stock market, operators made an art of this practice, as documented in Edwin Lefevre’s book Reminiscences of a Stock Operator, first published in 1923. A crypto market cap is an important metric that indicates the asset’s market value and the investors’ trust in the project.

Cryptocurrency mining is the process of adding new blocks to a blockchain and earning cryptocurrency rewards in return. Cryptocurrency miners use computer hardware to solve complex mathematical problems. These problems are very resource-intensive, resulting in heavy electricity consumption. In order to send and receive a cryptocurrency, you need a cryptocurrency wallet. In the case of Bitcoin, as long as you control the private key necessary to transact with your BTC, you can send your BTC to anyone in the world for any reason. Over the past few decades, consumers have become more curious about their energy consumption and personal effects on climate change.

Bitcoin vs Solana: What’s the biggest difference between BTC and SOL?

Digital currencies with a market cap of more than USD 10 billion are considered large-cap cryptocurrencies. These are considered low-risk investments because they’ve demonstrated sustainable growth and have higher liquidity. Now that you know everything about the crypto market cap let’s understand how to use it to your advantage to make well-informed investment decisions. Even when a small number of coins is in circulation for a given cryptocurrency, its market cap will rise significantly if the price is high. A cryptocurrency’s high price, even with a low circulating supply, leads to a large market cap. Conversely, if a cryptocurrency has a high circulating supply but its price is low, it may not have a large market cap.

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. In addition to traditional market cap, another important concept is diluted market cap. Diluted market cap takes into account all potential coins that could be in circulation, including those that may be released in the future due to factors such as mining rewards or token unlocks.

A distributed ledger is a database with no central administrator that is maintained by a network of nodes. In permissionless distributed ledgers, anyone is able to join the network and operate a node. In permissioned distributed ledgers, the ability to operate a node is reserved for a pre-approved group of entities. This game was extremely what is i transferred from state or police super popular in developing countries like The Philippines, due to the level of income they could earn. Players in the Philippines can check the price of SLP to PHP today directly on CoinMarketCap. If you are new to crypto, use CoinMarketCap’s own educational portal — Alexandria — to learn how to start buying Bitcoin and other cryptocurrencies.

1. As the crypto market continues to evolve and mature, market cap will remain an important metric for investors and traders.
2. Market caps can be broken into categories primarily based on total value, often denominated in fiat currency like US dollars or euros.
3. The total market cap depicts the total value of Bitcoin, altcoins, stablecoins, tokens, and all other crypto assets on the market combined.
4. Currently, there are around 19.70 million Bitcoins in existence, and this number will keep growing until the 21 millionth BTC is mined.
5. Markus and Palmer reportedly created the coin as a joke, commenting on the wild speculation of the cryptocurrency market.

Since old nodes will recognise the new blocks as valid, a soft fork is backward-compatible. This kind of fork requires only a majority of the miners upgrading to enforce the new rules. The forthcoming Federal Open Market Committee (FOMC) statement adds another layer of uncertainty, contributing to mid-term market volatility. As a result, nearly $300 million was liquidated from the crypto derivatives market, mostly involving long traders.

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. A blockchain is a type of distributed ledger that is useful for recording the transactions and balances of different participants. All transactions are stored in blocks, which are generated periodically and linked together with cryptographic methods.

A cryptocurrency exchange is a platform that facilitates markets for cryptocurrency trading. Some examples of cryptocurrency exchanges include Binance, Bitstamp and Kraken. These platforms are designed to provide the best possible prices for both buyers and sellers. Some exchanges only offer cryptocurrency markets, while others also allow users to exchange between cryptocurrencies and fiat currencies such as the US dollar or the euro.

Participants in a transaction will know the amount transacted and the parties involved. However, the same information will be unobtainable to any outside observer. The blockchain technology behind cryptocurrencies can help ensure that the coins and systems remain secure.

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 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.

On the other hand, smaller-cap cryptocurrencies may offer higher potential for growth, though they also come with greater risks. Investors often use market cap as a starting point for evaluating cryptocurrencies, though how they use it will largely depend on their investment goals and risk tolerance. 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. 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. In Bitcoin, miners use their computer hardware to solve resource-intensive mathematical problems. The miner that reaches the correct solution first gets to add the next block to the Bitcoin blockchain, and receives a BTC reward in return.

For example, if Bitcoin is currently worth US$50,000, and its current circulating supply is 20 million, then its market cap is just over US$1 trillion. The relationship between open interest and price movement can provide insights into market trends. For example, if open interest is increasing along with rising prices, it may indicate that new money is flowing into the market, and there is bullish sentiment.

It introduced the idea of a decentralized digital currency that recorded transactions on a blockchain (a public ledger). Market cap indicates data on any given cryptocurrency, including its market position and dominance compared to other cryptocurrencies. That’s why it’s considered a more precise metric than the cryptocurrency price and is used when ranking cryptocurrencies. By combining market cap with other metrics, investors gain a more comprehensive understanding of a cryptocurrency’s market dynamics, price trends, and sentiment. Market capitalization is a vital metric in assessing cryptocurrencies as it provides a snapshot of their total value in the market.

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. Cryptocurrency market capitalization provides no information regarding the future direction the price will take. Although one of these coins may sell at a lower price than Bitcoin, you’re buying into less value. However, these cryptocurrencies also potentially have more room for growth. Your challenge is to determine which of these low-cap coins could bring as much value to the world (or close to as much value) as Bitcoin has. Take the privacy coins, for instance, calculate their market caps, and add them all together.

Stablecoins are useful because they can still be transacted on blockchain networks while avoiding the price volatility of “normal” cryptocurrencies such as Bitcoin and Ethereum. Outside of stablecoins, cryptocurrency prices can change rapidly, and it’s not uncommon to see the crypto market gain or lose more than 10% in a single day. 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. On CoinCodex, market cap is the default metric by which we rank cryptocurrencies on our frontpage.