What is Market Cap in Crypto?
With the cryptocurrency market-creating, eye-popping records ever and anon has created a new perception for the digital currency. The propensity of the cryptocurrency to dominate the market sphere depends majorly on its
market cap.
Thus, on the same basis, these cryptocurrencies are classified into three categories which demonstrate the growth and risk level of all digital/virtual currencies.
1 The Large-Cap Cryptocurrencies are the ones capped beyond $10 billion. This category includes currencies like Bitcoin and Ethereum with lower investment risk and higher liquidity and growth.
2. On the other hand, Mid-Cap Cryptocurrencies are capped between $1 billion and $10 billion which holds the untapped potential but is subjected to higher risk as well.
3. The virtual currencies with a market cap of less than $1 billion are most susceptible to risk owing to their dramatic swings but are believed to possess huge growth potential which may last just for a short period.
How to Calculate Crypto Market Cap?
As we know the market cap is considered as the key element to indicate the relevancy of the cryptocurrency. The market cap is the metric to define the worth of the cryptocurrency which is determined using the equation i.e.
Market Cap = Price * Circulating Supply.
This serves as the key factor for the investors to understand the relative worth of the cryptocurrency and associated companies too. As a result, no matter what the market cap of the cryptocurrency is, more or less it indicates the long-term popularity of the coin.
Cryptocurrencies with the Highest Market Capitalization
Amongst hundreds of cryptocurrencies, few prominent ones are mushrooming each new day and are touching milestones. Following the remarkable footsteps of Bitcoin, many Altcoins have emerged and been explored in less than a decade.
1. Bitcoin, which is now a known name in the house of cryptocurrencies, is highly volatile with a market value of $653 billion as of May 2021. With its happening and progressive nature, Bitcoin has always managed to be in the good books of investors despite several ups and downs.
2. On the other hand, the second prominent Cryptocurrency, Ethereum reflects a market capitalization of US $ 290.32 billion and is turning out to be a tough competitor for Bitcoin as it has doubled, gaining more than 83% at the beginning of the year 2021.
3. Tether, the cryptocurrency heavily backed by fiat currencies like euro, Japanese Yen, Dollar is structured as a stable coin. This Real coin has acquired a market capitalization of USD 62.32 billion over the 7 years
of its launch.
4. Though Binance Coin has witnessed a gradual surge at the beginning of the year 2021, yet it has created healthy room to challenge both Bitcoin and Ethereum and emerged as the fourth-largest
cryptocurrency.
5. Oh, how can we forget talking about Cardano, the recently exploding cryptocurrency with a Market value of USD 48.88 billion? The giant crypto investors are driving their attention towards this happening altcoin and giving it the functional rank.
6. Fondly known as doggy coin, Dogecoin is also becoming the talk of the town with its market capitalization of USD 41.90 billion. Recently, this Shibu Inu dog witnessed a rise of 24% in a week with the major credit to Elon Musk’s tweets.
7. Next comes the XRP, yes, no doubt this cryptocurrency is not performing quite well in the market but somehow it makes up the top list with the Market Cap of USD 39.53 billion. The USD coin (USDC) stands at a market cap of USD 23.04 billion as a result of vast adoption by institutional investors.
8. Recently launched Polkadot, a digital currency that expanded to a Market Cap of USD 19.96 billion with the major aim of building a decentralized internet structure.
9. Last but not least Uniswap, the cryptocurrency that runs on the Ethereum blockchain is ruling as the 10th largest digital currency with a market worth of USD 13.40 billion. The list does not end here; there are more digital currencies that are yet to be tapped into crypto’s market flow.
Conclusion
With the crypto market space creating room for investment and innovation, many digital coins and currencies have already paved their way ahead. There exists a huge ground of scope in the crypto ecosystem for individuals and institutional investors. This makes Bitcoin and Altcoins hot potato in the recipe of the crypto market.
