Some cryptocurrencies, like Bitcoin, have a fixed total supply, while others may have mechanisms for creating additional tokens over time. Cryptocurrency has established its place in the financial world during the last decade, with thousands of digital assets currently on the market. Popular tokens like Bitcoin and Ethereum offer an alternative to traditional finance when it comes to trading and investment. A cryptocurrency’s market cap increases when its price per unit increases. Alternatively, an increase in circulating supply can also lead to an increase in market cap.

  • All cryptocurrencies can be volatile, but there are some more volatile than others.
  • Please note that an investment in crypto assets carries risks in addition to the opportunities described above.
  • summarizes the basic facts about a cryptocurrency, for example, includes its purpose, launch date, unique features, and future development goals.
  • 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.

The total crypto market volume over the last 24 hours is $70.94B, which makes a 20.19% increase. The total volume in DeFi is currently $7.56B, 10.66% of the total crypto market 24-hour volume. The volume of all stable coins is now $62.99B, which is 88.78% of the total crypto market 24-hour volume. The total value of all the cryptocurrencies on the market is called the “market cap” for short. Since cryptocurrencies are usually volatile, the market cap is also very volatile and often changes significantly.

How Does CoinMarketCap Decide Which Exchanges to List?

While it’s possible to invest in cryptocurrencies, they differ a great deal from traditional investments, such as stocks and shares. The UK regulator, the Financial Conduct Authority, has repeatedly warned investors that they risk losing all their money if they buy cryptocurrency, with no possibility of compensation. Dogecoin was famously started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes.

Meanwhile, achieving a 300% increase for a project with a market cap of $300 million dollars won’t be that difficult. Many investors choose to invest in mid-cap crypto because it has the right balance in terms of potential profit and risk. Mid-cap assets typically experience more significant price increases than assets like Bitcoin. In a bull market, assets of this category can increase by hundreds of percent.

Cryptocurrencies worth more than $10 billion tend to have high trading volumes, but their market values can change slightly. CoinMarketCap uses circulating supply – not total supply – to calculate the market capitalization of a cryptocurrency. Obviously, it’s not fair to say a coin has a market cap of $1 billion if the project has only released $1 million worth of coins, with $999 million remaining to be unlocked. Cryptos with higher market caps generally have more investors and more influence over the price of other coins and tokens. That’s one reason a cryptocurrency’s market cap is the customary basis for ranking it within the crypto market. When you’re evaluating a particular crypto’s place in the market, price alone is not enough.

How are crypto prices calculated?

Market sentiment can also impact market cap, as positive or negative news can affect investor decisions and asset prices. 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. Mid-cap crypto assets may offer more significant price appreciation compared to large-caps, but come with higher risk.

What Is Market Capitalization?

Smart contracts are self-executing programs that run on a blockchain and self-execute when specific conditions are met. This game was extremely popular in developing countries like The Philippines, due to the decent income they can earn. Players in the Philippines can check the price of SLP to PHP today directly on CoinMarketCap.

Market Cap Classification in Crypto

Any investment or trading is risky, and past returns are not a guarantee of future returns. It’s essential to also consider the quality of trading volume, as some exchanges may engage in wash trading or other manipulative practices. Conversely, negative news, security breaches, or regulatory crackdowns can all erode investor confidence, leading to a drop in prices and market cap. 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. With a blockchain, it’s possible for participants from across the world to verify and agree on the current state of the ledger.

But, unlike a company’s market cap, a cryptocurrency’s market cap implies nothing about ownership. It tells us only the total value of all coins, as with any other currency in circulation. Large-cap cryptocurrencies typically have market caps above $10 billion and include well-known names such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), XRP, and USD Coin (USDC). For smaller alternative cryptocurrencies or altcoins, there can be noticeable price discrepancies across different exchanges.

How to Calculate Market Capitalization in Crypto

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. Projects in this category are usually less popular altcoins and rank below 50 in the rank. As of October 2019, the total crypto market cap sits at around $220 billion.