Cryptocurrency prices by market cap
The term DeFi decentralized finance is used to refer to a wide variety of decentralized applications that enable financial services such as lending, borrowing and trading. Cryptocurrency prices by market cap Zcash ZEC. A working product means that development is at an advanced stage, which signals that the ideas behind the project have been tested, if not in the wild then under circumstances that closely mimic the real world.
Most exchange aggregators post data directly from token projects or crypto exchanges. This way, we can determine an average price that reflects cryptocurrency market conditions as accurately as possible. Although one of the factors, price, is present in both cases, there was a need to find a crypto metric that replicated the role of shares outstanding.
Proof-of-Work coins use mining, while Proof-of-Stake coins use staking to achieve consensus about the state of the ledger.
In order to send and receive a cryptocurrency, you need a cryptocurrency wallet. A cryptocurrency wallet is software that manages private and public keys.
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.
Crypto prices are calculated by averaging cryptocurrency exchange rates on different cryptocurrency trading platforms.
This way, we can determine an average price that reflects cryptocurrency market conditions as accurately as possible.
These market dynamics ultimately determine the current price of any given cryptocurrency. CoinCodex tracks more than crypto exchanges and thousands of trading pairs to make sure that our data is as reliable as possible.
Generally, cryptocurrency price data will be more reliable for the most popular cryptocurrencies. 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.
For smaller alternative cryptocurrencies or altcoinsthere can be noticeable price discrepancies across different exchanges.
Bitcoin is the most popular cryptocurrency and enjoys the most adoption among both individuals and businesses.
However, there are many different cryptocurrencies that all have their own advantages or disadvantages. If you value a highly secure and decentralized network above all, Bitcoin is probably your best bet.
This is because the Bitcoin network consists of thousands of nodes spread geographically and is secured by a massive amount of computing power.
On the other hand, if you require transactions to be very fast and cheap, Bitcoin is probably not the best choice due to the relative inefficiency of its Proof-of-Work design.
If you want to use decentralized applications and need smart contract functionality, a cryptocurrency such as Ethereum or EOS would be the best choice.
The cryptocurrencies listed here are used as examples to illustrate the point that the best cryptocurrency depends on your specific requirements and use case.
Cryptocurrency was invented by Satoshi Nakamotowhich is the pseudonym used by the inventor of Bitcoin.
Even though digital currency concepts existed before Bitcoin, Satoshi Nakamoto was the first to create a peer-to-peer digital currency that reliably solved the issues facing previous digital money projects.
Bitcoin was initially proposed in and launched in early 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. We also track the total cryptocurrency market cap by adding together the market cap of all the cryptocurrencies listed on CoinCodex.
The total market cap provides an estimate on whether the cryptocurrency market as a whole is growing or declining. Circulating supply refers to the amount of units of a cryptocurrency that currently exist and can be transacted with.
Crypto market cap matters because it is a useful way to compare different cryptocurrencies. If Coin A has a significantly higher market cap than Coin B, this tells us that Coin A is likely adopted more widely by individuals and businesses and valued higher by the market.
On the other hand, it could potentially also be an indication that Coin B is undervalued relative to Coin A.
Even though market cap is a widely used metric, it can sometimes be misleading. If a cryptocurrency is actively traded and has deep liquidity across many different exchanges, it becomes much harder for single actors to manipulate prices and create an unrealistic market cap for the cryptocurrency.
Alternatively, an increase in circulating supply can also lead to an increase in market cap. However, an increase in supply also tends to lead to a lower price per unit, and the two cancel each other out to a large extent.
We arrive at this figure by multiplying the price of 1 BTC and the circulating supply of Bitcoin. 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. The circulating supply of Bitcoin started off at 0 but immediately started growing as new blocks were mined and new BTC coins were being created to reward the miners.
Currently, there are around Since An altcoin is any cryptocurrency that is not Bitcoin.
The word "altcoin" is short for "alternative coin", and is commonly used by cryptocurrency investors and traders to refer to all coins other than Bitcoin.
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.
However, Bitcoin is far from the only player in the game, and there are numerous altcoins that have reached multi-billion dollar valuations.
The second largest cryptocurrency is Ethereum, which supports smart contracts and allows users to make highly complex decentralized applications.
In fact, Ethereum has grown so large that the word "altcoin" is rarely used to describe it now.
Generally, altcoins attempt to improve upon the basic design of Bitcoin by introducing technology that is absent from Bitcoin.
This includes privacy technologies, different distributed ledger architectures and consensus mechanisms. 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.
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.
The term DeFi decentralized finance is used to refer to a wide variety of decentralized applications that enable financial services such as lending, borrowing and trading.
DeFi applications are built on top of blockchain platforms such as Ethereum and allow anyone to access these financial services simply by using their cryptocurrency wallets.
The top 10 cryptocurrencies are ranked by their market capitalization. Even though 10 is an arbitrarily selected number, being in the top 10 by market capitalization is a sign that the cryptocurrency enjoys a lot of relevance in the crypto market.
The crypto top 10 changes frequently because of the high volatility of crypto prices. Despite this, Bitcoin and Ethereum have been ranked 1 and 2, respectively, for several years now.
If you want to invest in cryptocurrency, you should first do your own research on the cryptocurrency market.
There are multiple factors that could influence your decision, including how long you intend to hold cryptocurrency, your risk appetite, financial standing, etc.
The reason why most cryptocurrency investors hold some BTC is that Bitcoin enjoys the reputation of being the most secure, stable and decentralized cryptocurrency.
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.
Cryptocurrency prices by market cap hacker for dummies reddit
You can also follow cryptocurrency prices on CoinCodex to spot potential buying opportunities. A coin is a cryptocurrency that is the native asset on its own blockchain.
These cryptocurrencies are required to pay for transaction fees and basic operations on the blockchain. Tokens, on the other hand, are crypto assets that have been issued on top of other blockchain networks.
Even though you can freely transact with these tokens, you cannot use them to pay Ethereum transaction fees.
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.
Once a block is added to the blockchain, data contained within it cannot be changed, unless all subsequent blocks are changed as well.
This is why reaching consensus is of utmost importance.
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.
Blockchain was invented by Satoshi Nakamoto for the purposes of Bitcoin. 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.
The miner that provides the correct solution to the problem first gets to add the new block of transactions to the blockchain and receives a reward in return for their work.
Cryptocurrencies such as Bitcoin feature an algorithm that adjusts the mining difficulty depending on how much computing power is being used to mine it.
In other words — as more and more people and businesses start mining Bitcoin, mining Bitcoin becomes more difficult and resource-intensive.
This feature is implemented so that the Bitcoin block time remains close to its 10 minute target and the supply of BTC follows a predictable curve.
Liquidity measures the degree to which an asset can be bought or sold without causing a major price change.
In most cases, high volume and high liquidity mean a healthy market that is difficult to manipulate. Indeed, a classic way to measure the quality of a cryptocurrency is to check whether its trading volume is equal to or greater than its market cap.
Crypto market cap has major drawbacks, yet it remains the go-to indicator for many investors, analysts, and commentators.
This is unfortunate. At best, market cap can serve as a jumping-off point for evaluating a cryptocurrency.
But it is only truly helpful when used in tandem with other metrics like trading volume. Although market cap is, at best, an incomplete indicator of cryptoasset quality more on that herein some cases, it can be a useful starting point for analyzing an investment opportunity.
For example, high market cap could indicate that a cryptocurrency is resistant to volatility. Low market cap indicates the opposite, that major news events or whale activity can significantly impact price.
However, crypto market cap can only take you so far. Over time, the simplicity of market cap has made it the most popular way to compare cryptoassets.
For this reason alone, crypto market cap matters. Experienced investors will usually consider multiple indicators, but there are some who base their decisions exclusively on market cap.
Crypto exchanges use market cap as a way to determine which coins to list — coins with higher caps are more likely to make it.
Exchange data aggregators tend to rank projects by market cap. Project owners take market cap seriously enough to spend time and money manipulating the circulating supply or price of their tokens.
This is just one reason why crypto market cap is considered a misleading or unreliable indicator. As the crypto space matures, better tools will be developed that will provide market participants with in-depth, actionable information.
When that happens, market cap will likely lose its place as the leading crypto indicator. The market reached this level on January 7, Crypto market cap is calculated the same way as stock market cap, by multiplying the circulating supply of an asset by its price in fiat currency e.
The calculation gets trickier when an asset is traded against another asset. Price depends on who makes the calculation.
The general price is calculated as a composite of spot prices used on crypto exchanges. For index funds, which have recently become popular, the calculation is adjusted to include variation in trading pair prices.
The price that you see on online news aggregators Google, for example is usually the average price at which an asset trades on leading exchanges.
In the crypto space, the problem of inadequate pricing is well-known. Most pricing index issuers fail to detail how they price instruments or where they get their data.
At Nomics, we strive to set this right.
Our methodology takes the price at which an instrument last traded on each exchange, weighted by the general trading volume over the past 24 hours.
More on our methodology here. When it comes to supply, it is worth noting that the calculation depends entirely on the token and the mechanics of its protocol.
03.2022 Stacks STX. Cryptocurrency prices by market cap Venture capital can also bring credibility to a project, which attracts other investors and drives up the price. For any given coin, you will be able to select a custom time period, data frequency, and currency.Although Bitcoin has a finite supply 21 millionmost tokens are designed with a dynamic supply that increases over time.
When calculating the market cap of a particular cryptoasset, it is the circulating supply that should be taken into account.
Circulating supply is the number of tokens that are currently available on the market. Circulating supply is a better metric than total supply because it excludes coins that are reserved or locked.
To find Bitcoin's market cap, locate the value in the "market cap" column associated with the Bitcoin record in the table above.
It is worth noting that, due to the finite supply of Bitcoin, at some point, circulating supply and total supply will be equal.
Some investors view low market cap as synonymous with high profit potential. That is why many market participants favor cryptocurrencies with low market caps.
They believe these currencies have more room for price appreciation. Others view low market cap cryptocurrencies as ground-floor opportunities.
Whatever the reasoning, low market cap cryptocurrencies are popular investments. Nomics lists cryptocurrencies with market caps as low as a few thousand dollars.
However, you should avoid choosing an investment by market cap alone.
Consider additional factors such as recent price changes, trading volume, circulating supply, and transparent volume, a feature unique to Nomics that shows the percentage of trading volume that occurs on reputable cryptocurrency exchanges.
For more on transparency volume, see here. Market capitalization is often used to indicate the value of a company or stock.
It is calculated by multiplying the total number of shares outstanding by the price per share. Investors calculate the value of a cryptocurrency by multiplying its circulating supply by its current price.
Though stock and crypto investors use the same indicator, the calculation differs in some respects. To calculate the market cap of a company, multiply shares outstanding by the current price per share.
Shares outstanding reflects all stocks that are currently held by shareholders. It even includes restricted shares held by corporate staff and share blocks held by institutional investors.
Price, on the other hand, is affected by internal factors such as profit, expected profit, and plans for growth.
How investors perceive these factors influences supply and demand and determines the price of a stock. To find the market cap of a cryptocurrency, multiply circulating supply by current price.
Circulating supply is similar to shares outstanding but only includes tokens that are available in the market.
It excludes coins that are reserved or locked. The price of a cryptocurrency is usually calculated as an average of the spot price at which the instrument trades on leading exchanges.
Cryptocurrency pricing in the context of index funds happens in a slightly more sophisticated way and is adjusted to include variation in trading pair prices.
Although market cap is used to value both companies and cryptocurrencies, there are differences in the way it is applied.
For instance, shares outstanding takes into account all issued shares, including those held by corporate officers and big investors.
Circulating supply ignores reserved or locked coins. As a result, crypto market cap only includes assets that are available for trading.
If crypto market cap followed the same logic as stock market cap, it would be based on total supply. A far more accurate calculation is achieved by using circulating supply.
For more on the cons of using total supply, see the next question below. Another difference is pricing mechanics.
03.2022 The two major categories of cryptocurrencies are Proof-of-Work and Proof-of-Stake. Litecoin LTC. Cryptocurrency prices by market cap Although Bitcoin has a finite supply 21 million , most tokens are designed with a dynamic supply that increases over time.While most stocks have fixed issuance mechanisms, in the case of cryptocurrencies, many protocols are designed to expand continuously, thus inflating token supply over time.
To compensate, one must analyze market cap in a broader context. The first cryptocurrency, Bitcoin, was launched in This goes to show how young the cryptocurrency market is compared to the stock market, which has had centuries to mature.
We often make the mistake of copying stock market metrics and trying to shoehorn them into the world of cryptocurrencies.
So is the case with market capitalization. Market cap is applied to both stocks and cryptocurrencies, but there are differences in how the metric works in each case.
In the world of stocks, market cap can reveal much about a company including corporate policies for example, the issuance or repurchase of sharesmanagement style, and operational scale.
It is often used for its simplicity and relative effectiveness at assessing the quality of a stock. When it comes to cryptocurrencies, however, market cap is not a useful basis for making an investment decision.
In fact, many researchers describe crypto market cap as a deceiving indicator that is used only because it is simple.
Despite all that, market cap continues to be used as a leading indicator of cryptoasset quality — even by experienced investors.
This is a mistake. Stocks and tokens have very different characteristics. Stocks represent ownership of a company that creates economic and social value.
Depending on the type of stock, ownership can provide a shareholder with the right to receive dividends, vote, and participate in procedures aimed at raising liquidity.
Tokens represent participation in a network that may or may not generate value.
Tokens do not guarantee claims on profits or participation in sales or ICOs. The truth is, while digital tokens are an exciting asset class, they are fundamentally different than stocks, and using the same indicator to analyze them can result in false or unrepresentative conclusions.
Another problem with crypto market cap is token inflation. With stocks, the total supply is fixed and can rarely be changed.
The only way to change it is via a stock split. The increase in circulating supply that takes place over time leads to a higher market cap.
It could just mean that there are more tokens in circulation. It may simply indicate that there are fewer tokens in circulation.
Crypto market cap was initially copied from the stock market. Although one of the factors, price, is present in both cases, there was a need to find a crypto metric that replicated the role of shares outstanding.
The option that most resembled shares outstanding was total supply — all coins or tokens that currently exist and are either in circulation or locked.
But this opened a loophole. Token owners could artificially inflate their market cap by pre-mining coins and locking them away.
In response, total supply was swapped for circulating supply — all coins or tokens that are available for trading, excluding those that are reserved or locked.
Circulating supply was intended to measure liquid supply. This raised new complications, namely how to define which part of supply could be considered liquid.
Take lost coins, for example. Circulating supply is incapable of judging which coins are lost forever. In the case of Bitcoin BTCit is estimated that up to 4 million coins have been lost.
Perhaps the most notable pitfall of the crypto market cap calculation is found in the mechanics of the cryptocurrency market.
This is why we often use a metric known as redemption impact score which measures the likelihood of a large order affecting the price of a cryptoasset.
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A high redemption impact score indicates a less stable price while a low score indicates that an asset can maintain a relatively stable price through dynamic market activity.
In reality, the majority of cryptocurrencies have high redemption impact scores.
Another drawback of crypto market cap is that it is prone to manipulation. This demonstrates how easily market cap can be manipulated when a coin has meager trading volume.
The same occurs when a whale, or large investor holding a significant percentage of a cryptocurrency, decides to dump it all at once.
Another way to illustrate how inefficient and even deceiving market cap can be is to imagine that you are launching a cryptocurrency project.
Yet another downside to crypto market cap is its inability to measure the value of a project. Crypto market cap merely reveals the price that investors are willing to pay.
It does not express value.
We often make the mistake of copying stock market metrics and trying to shoehorn them into the world of cryptocurrencies. Cryptocurrency prices by market cap to invest in on the stock market Whatever the reasoning, low market cap cryptocurrencies are popular investments.Consider overnight price gains. Most of the time, the answer is no. One last thing to bear in mind is that market cap is a reflection of the last price at which a cryptoasset traded.
All previous trades were executed at different prices, and there is no guarantee that the last price will be the price at which the next trade executes.
In fact, given the volatility of cryptocurrencies, price is unlikely to remain the same for very long. This normalizes emission schedules between assets to provide a more even comparison.
However, FDMC has its flaws. The main one is its inability to deal with protocols designed to inflate supply in perpetuity.
This means that no matter how distant the point in time, results may still be skewed. Another pitfall of FDMC is its assumption that prices will remain constant regardless of changes in supply.
Realized cap is another market cap alternative. It improves on circulating supply by excluding coins that have been lost or never activated.
UTXO helps avoid the problem of double-spending, or the spending of nonexistent coins. The only downside to realized cap is that it struggles to differentiate coins that are lost entirely from coins that are HODLed for the long haul.
Although market cap is used to value both companies and cryptocurrencies, there are differences in the way it is applied. What is an altcoin? Cryptocurrency prices by market cap Currencies Currencies are the most common cryptoasset type.This leads us to one of the most popular alternatives to market cap, market-value-to-realized-value MVRVwhich seeks to determine how over- or undervalued a particular asset is by analyzing where it is in its market cycle.
MVRV is calculated by dividing market cap by realized cap. The addition of market cycle analysis enhances market cap and makes it more dynamic.
You can learn more about market cap alternatives in the following essay. However, it is worth noting that crypto market cap, or any of its alternatives, represent a single way to evaluate the quality of a cryptoasset.
There are other indicators that provide statistical data about the performance of cryptoassets and characteristics that might be detrimental to their long-term health.
To fully understand them, we must first look at the stock market. Cryptocurrency analysts have attempted to adapt this framework into metrics such as network-value-to-Metcalfe NVM and network-value-to-transactions NVT.
The law is usually applied to online networks, but it is also considered useful in the world of cryptocurrencies.
According to the law, the more people who use a network, the more utility each person derives.
This also leads to a higher network value. Cryptocurrency analysts use NVM to determine how over- or undervalued an asset may be.
The next ratio, NVT, focuses on transaction volume.
Cryptocurrency prices by market cap exchange fees residual best to buy for long term
In place of earnings, NVT substitutes network transactions and divides market cap by daily transaction volume.
Low NVT indicates an undervalued network. Buy support helps explain how liquid a particular asset is and how many buy orders should be expected.
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Hopefully, this demonstrates that crypto market cap is an incomplete metric and that investors who rely on it exclusively do so at their peril.
Although market cap is the most popular indicator of cryptoasset value, it is inefficient at estimating asset quality and struggles to provide actionable data.
For these reasons, crypto market cap should always be backed by additional market metrics. There are two ways to raise the market cap of a crypto project.
We have already examined the drawbacks of market cap. To summarize, it presents investors with a price rather than a value.
Critics insist that market cap is not a measure of value but a crude expression of the price investors are willing to pay. Some examples of cryptocurrency exchanges include BinanceBitstamp and Kraken. Cryptocurrency prices by market cap insider news That said, to determine the maximum cryptocurrency market cap, one would have to find the maximum circulating supply of all available cryptocurrencies then multiply that by the prices of those currencies when their respective circulating supplies are at their maximums. Maker MKR.This means that if you want to raise the price of a cryptocurrency, focus on increasing the value of the network.
The first step is to attract as many active users as possible. The bigger the network, the more stable and attractive it is.
Vitalik Buterin, the founder of Ethereum ETHlisted several characteristics that increase the value of a network:.
But how does a network reach a point where it attracts new users on a regular basis? Before a network attracts users continuously and naturally, it must meet certain prerequisites.
For a coin to be valuable, it must have a strong use case. A protocol must solve a real-world problem. It could tackle a market pain point or provide value to investors in the form of utility rights or as a medium of exchange on a platform.
When a coin has a proven use case, there is an incentive for investors to buy, hold, or spend it. Consider Ethereum.
The more developers there are, the bigger the demand for ETH, and the higher its price goes. The result: a higher network value and a higher market cap.
The aim of each cryptocurrency is mass adoption. That said, having real-world applications remains a difficult task for most crypto projects.
It is a long and complicated journey, but it is the right path to follow. In some cases, scarcity can result in increased value.
The more rare an asset, the more expensive it becomes. This is certainly the case with Bitcoin BTC. Its fixed supply means that its protocol cannot continuously issue new tokens, and many experts believe that the closer we get to the moment when all coins are mined, the higher the price will rise.
This principle is valid mostly for coins with real-world use cases. A large number of coins are designed with continuously expanding protocols.
Scarcity is a useful tool for project owners who wish to control the market cap of their tokens, but it should be used appropriately.
Another way to boost market cap is to get listed on as many reputable crypto exchanges as possible. However, getting listed on exchanges cannot be the final goal.
Projects that are listed on leading exchanges are usually considered more reputable and find it easier to attract investors.
This then leads to higher liquidity, which, combined with a higher market cap, can turn a cryptoasset into a preferred investment opportunity.
For more information on how to get listed on an exchange and remain successful afterward, check our Cryptocurrency Exchanges FAQ.
Projects that hit roadmap milestones on time have a higher perceived value. Backing from well-known companies means more transparency and a more natural path for projects to establish themselves on the market.
Projects that have a stable or increasing base of followers are more attractive to investors: the higher the number of active contributors, the more progressive a network will become.
Think of it like the snowball effect — the more people there are on a network, the more will be interested in joining.
Node count reveals how many active wallets exist on a network. The higher the number, the stronger the network is.
However, a high node count or a large community is not enough. Projects must also listen to their users, who can spot points of friction or recommend features that work well on other networks.
The truth is, the market — or user behavior — can tell a project everything it needs to know. There is nothing more harmful to a cryptocurrency than a bad reputation.
There have also been several cases of projects using whitepapers copied from other projects without changing anything but the organization and token name.
Although some investors will fall for a bogus whitepaper, it is usually a recipe for disaster. Investors also tend to avoid tokens that have a history of security breaches or protocol issues.
In fact, if a project shows that it overcame a security issue and bounced back stronger, it will reflect positively on the long-term vision of the project and the quality of the team behind it.
In recent years, the marketing of cryptoasset projects has become increasingly important.
Competition forces projects to continuously improve their marketing communications and adopt different channels to discover new audience members.
However, in most cases, projects should spend at least some money on marketing and PR. To determine the maximum cryptocurrency market cap, we need max values for price and circulating supply.
Generally speaking, the price of a cryptocurrency is determined by supply and demand. Unfortunately, demand is almost impossible to predict.
Depending on outside factors, such as a ban on cryptocurrencies, it may even drop below its current price. Estimating the maximum circulating supply of all cryptocurrencies can also be difficult.
While some protocols declare a fixed supply, others are designed to continuously issue new tokens. Due to these unpredictable dynamics and the fact that new cryptocurrencies are developed daily, it becomes quite hard to predict how much cryptocurrency will be in circulation at any point in the future.
That said, to determine the maximum cryptocurrency market cap, one would have to find the maximum circulating supply of all available cryptocurrencies then multiply that by the prices of those currencies when their respective circulating supplies are at their maximums.
For this to occur, the world financial system would have to undergo a paradigmatic shift.
Banks and high-net-worth individuals would have to drop current investments and stores of value in favor of cryptocurrencies.
For now, this seems unlikely. More on that here. This means that explosive growth will be required for the market cap of cryptocurrencies to rival the market cap of checking accounts or stocks.
Ranking cryptocurrencies solely by market cap ignores crucial statistical information and fails to inform investors about popularity, liquidity, and other important factors.
Investors who base their decisions exclusively on market cap often end up disappointed. Investors would be better off analyzing the time needed for a cryptoasset to trade its market cap equivalent.
The rule of thumb is that if a cryptocurrency generates trading volume that is equal to or higher than its market cap, it is healthy and stable.
Investors can get in and out of positions quickly and lock in trades at preferred prices. Monthly trading volume for some of the more popular cryptocurrencies is similar to their respective market caps.
This indicates stability and balanced interest from market participants. But if we look at Bytecoin BCNwe find a major gap between transparent trading volume and market cap.
How might a coin with low trading volume get a high market cap? A disadvantage of investing in low-volume cryptoassets is their inability to support big trades.
A single trade could move a low-volume cryptocurrency significantly. This makes such assets unattractive to large investors who would struggle to execute major trades without experiencing slippage.
Depending on whether you want information about the entire cryptocurrency market or an individual asset, there are several ways to track market cap history on Nomics.
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It is located in the top left corner and includes data that goes back up to a year. To get market cap history for a specific cryptocurrency, go to the page for that asset.
For more on our embeddable cryptocurrency pricing widget, see this announcement. In a previous answer, we covered the drawbacks of relying on market cap when making cryptocurrency investment decisions.
We demonstrated just how easy it is to manipulate market cap. In recent years, the cryptocurrency space has made strides towards legitimacy, but systemic abuse remains.
One of the most common ways the ecosystem is manipulated is via artificial inflation of project market caps. Crypto market cap is calculated by multiplying the price of a coin by its circulating supply.
This means that by influencing circulating supply, a token owner can affect the market capitalization of his or her project.
The easiest way to do that is by building frequent token emissions into the protocol. Other project owners adopt the strategy of releasing a massive initial issue.
So was the case with U. Over the past few years, several studies have concluded that some token owners send fake volume to exchanges to make their projects appear more attractive to investors.
Higher volume indicates greater interest in a project and more liquidity, which means that investors can enter and exit positions at their preferred prices.
Sometimes the perpetrator is an investor interested in artificially boosting the price of a coin. In a pump-and-dump scheme, a market participant sends a high volume of buy orders to create the impression that there is interest in a project.
This generates real interest, and the price jumps. At that point, the initial buyers sell — or dump. After all, there are some natural buyers.
Rather than sell all at once, they sell steadily. All of this results in an artificial price increase that simultaneously drives up market cap.
This type of price manipulation is usually applied to low market cap and low-volume cryptoassets, although, depending on the scale, it can work in more developed markets as well.
To learn more about pump-and-dump schemes and their application to the cryptocurrency world, see this comprehensive study.
Many projects pay review sites for positive reviews and recommendations. An unsuspecting audience can be easily manipulated.
To trick others into buying their coin, a community might try fake news stories, fake partnerships, or even forged endorsements from prominent public figures.
For example, a group created a fake Twitter account that resembled one belonging to John McAfee, an entrepreneur and a well-known figure in the cryptocurrency world.
A cryptocurrency is a digital currency that keeps records about balances and transactions on a distributed ledger, which is most commonly in the form of a blockchain.
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.
Top cryptocurrencies such as Bitcoin and Ethereum employ a permissionless design, in which anyone can participate in the process of establishing consensus regarding the current state of the ledger.
This enables a high degree of decentralization and resiliency, making it very difficult for a single entity to arbitrarily change the history of transactions.
Cryptocurrency works through networks of nodes that are constantly communicating with each other to stay updated about the current state of the ledger.
With permissionless cryptocurrencies, a node can be operated by anyone, provided they have the necessary technical knowledge, computer hardware and bandwidth.
However, not all cryptocurrencies work in the same way. While all cryptocurrencies leverage cryptographic methods to some extent hence the namewe can now find a number of different cryptocurrency designs that all have their own strengths and weaknesses.
The two major categories of cryptocurrencies are Proof-of-Work and Proof-of-Stake. Proof-of-Work coins use mining, while Proof-of-Stake coins use staking to achieve consensus about the state of the ledger.
In order to send and receive a cryptocurrency, you need a cryptocurrency wallet. A cryptocurrency wallet is software that manages private and public keys.
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.
Crypto prices are calculated by averaging cryptocurrency exchange rates on different cryptocurrency trading platforms.
This way, we can determine an average price that reflects cryptocurrency market conditions as accurately as possible. These market dynamics ultimately determine the current price of any given cryptocurrency.
CoinCodex tracks more than crypto exchanges and thousands of trading pairs to make sure that our data is as reliable as possible.
Generally, cryptocurrency price data will be more reliable for the most popular cryptocurrencies. 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.
For smaller alternative cryptocurrencies or altcoinsthere can be noticeable price discrepancies across different exchanges.
Bitcoin is the most popular cryptocurrency and enjoys the most adoption among both individuals and businesses. However, there are many different cryptocurrencies that all have their own advantages or disadvantages.
If you value a highly secure and decentralized network above all, Bitcoin is probably your best bet. This is because the Bitcoin network consists of thousands of nodes spread geographically and is secured by a massive amount of computing power.
On the other hand, if you require transactions to be very fast and cheap, Bitcoin is probably not the best choice due to the relative inefficiency of its Proof-of-Work design.
If you want to use decentralized applications and need smart contract functionality, a cryptocurrency such as Ethereum or EOS would be the best choice.
The cryptocurrencies listed here are used as examples to illustrate the point that the best cryptocurrency depends on your specific requirements and use case.
Cryptocurrency was invented by Satoshi Nakamotowhich is the pseudonym used by the inventor of Bitcoin.
Even though digital currency concepts existed before Bitcoin, Satoshi Nakamoto was the first to create a peer-to-peer digital currency that reliably solved the issues facing previous digital money projects.
Bitcoin was initially proposed in and launched in early 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. We also track the total cryptocurrency market cap by adding together the market cap of all the cryptocurrencies listed on CoinCodex.
The total market cap provides an estimate on whether the cryptocurrency market as a whole is growing or declining.
Circulating supply refers to the amount of units of a cryptocurrency that currently exist and can be transacted with.
Crypto market cap matters because it is a useful way to compare different cryptocurrencies. If Coin A has a significantly higher market cap than Coin B, this tells us that Coin A is likely adopted more widely by individuals and businesses and valued higher by the market.
On the other hand, it could potentially also be an indication that Coin B is undervalued relative to Coin A. Even though market cap is a widely used metric, it can sometimes be misleading.
If a cryptocurrency is actively traded and has deep liquidity across many different exchanges, it becomes much harder for single actors to manipulate prices and create an unrealistic market cap for the cryptocurrency.
Alternatively, an increase in circulating supply can also lead to an increase in market cap. However, an increase in supply also tends to lead to a lower price per unit, and the two cancel each other out to a large extent.
We arrive at this figure by multiplying the price of 1 BTC and the circulating supply of Bitcoin.
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.
The circulating supply of Bitcoin started off at 0 but immediately started growing as new blocks were mined and new BTC coins were being created to reward the miners.
Currently, there are around Since An altcoin is any cryptocurrency that is not Bitcoin. The word "altcoin" is short for "alternative coin", and is commonly used by cryptocurrency investors and traders to refer to all coins other than Bitcoin.
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.
However, Bitcoin is far from the only player in the game, and there are numerous altcoins that have reached multi-billion dollar valuations.
The second largest cryptocurrency is Ethereum, which supports smart contracts and allows users to make highly complex decentralized applications.
In fact, Ethereum has grown so large that the word "altcoin" is rarely used to describe it now. Generally, altcoins attempt to improve upon the basic design of Bitcoin by introducing technology that is absent from Bitcoin.
This includes privacy technologies, different distributed ledger architectures and consensus mechanisms. 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.
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.
The term DeFi decentralized finance is used to refer to a wide variety of decentralized applications that enable financial services such as lending, borrowing and trading.
DeFi applications are built on top of blockchain platforms such as Ethereum and allow anyone to access these financial services simply by using their cryptocurrency wallets.
The top 10 cryptocurrencies are ranked by their market capitalization. Even though 10 is an arbitrarily selected number, being in the top 10 by market capitalization is a sign that the cryptocurrency enjoys a lot of relevance in the crypto market.
The crypto top 10 changes frequently because of the high volatility of crypto prices. Despite this, Bitcoin and Ethereum have been ranked 1 and 2, respectively, for several years now.
If you want to invest in cryptocurrency, you should first do your own research on the cryptocurrency market.
There are multiple factors that could influence your decision, including how long you intend to hold cryptocurrency, your risk appetite, financial standing, etc.
The reason why most cryptocurrency investors hold some BTC is that Bitcoin enjoys the reputation of being the most secure, stable and decentralized cryptocurrency.
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.
A coin is a cryptocurrency that is the native asset on its own blockchain.
These cryptocurrencies are required to pay for transaction fees and basic operations on the blockchain. Tokens, on the other hand, are crypto assets that have been issued on top of other blockchain networks.
Even though you can freely transact with these tokens, you cannot use them to pay Ethereum transaction fees.
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.
Once a block is added to the blockchain, data contained within it cannot be changed, unless all subsequent blocks are changed as well.
This is why reaching consensus is of utmost importance. 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.
Blockchain was invented by Satoshi Nakamoto for the purposes of Bitcoin. 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.
The miner that provides the correct solution to the problem first gets to add the new block of transactions to the blockchain and receives a reward in return for their work.
Cryptocurrencies such as Bitcoin feature an algorithm that adjusts the mining difficulty depending on how much computing power is being used to mine it.
In other words — as more and more people and businesses start mining Bitcoin, mining Bitcoin becomes more difficult and resource-intensive.
This feature is implemented so that the Bitcoin block time remains close to its 10 minute target and the supply of BTC follows a predictable curve.
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.
You can find historical crypto market cap and crypto price data on CoinCodex, a comprehensive platform for crypto charts and prices.
For any given coin, you will be able to select a custom time period, data frequency, and currency. The feature is free to use and you can also export the data if you want to analyze it further.
There are thousands of different cryptocurrencies. Market capitalization is one of the most popular metrics in finance.
Vitalik Buterin, the founder of Ethereum ETHlisted several characteristics that increase the value of a network: Security Larger networks require consensus from more nodes, which means more resilience against hackers. Though stock and crypto investors use the same indicator, the calculation differs in some respects. Cryptocurrency prices by market cap do exchanges work Oftentimes, this data contains fake volume. Reasonable fees — Users prefer cryptocurrencies with no or low fees.It was first introduced in the stock market and has been adapted to the crypto world where it is used to value cryptocurrencies.
Crypto market cap has its supporters and its critics.
Supporters view market cap as a simple, albeit incomplete way to rank cryptoasset projects. Critics insist that market cap is not a measure of value but a crude expression of the price investors are willing to pay.
Prices today cryptocurrency prices by market cap analysis coin to list own on exchange
Both sides make valid points. Crypto market cap is calculated by multiplying the circulating supply of a coin by its current price.
As with stocks, cryptocurrencies are classified in terms of market cap. In the world of stocks, the higher the market cap, the safer the investment.
In the world of cryptocurrencies, a high market cap is less meaningful. If the market cap of a cryptoasset is high, it means that it trades at a high price, has a high circulating supply, or both.
If the market cap is low, it signals that the price per coin is low, there is little circulation, or both. This is all that market cap can reveal about a cryptocurrency.
Nothing more. Crypto market cap is a source of controversy. There are those who claim that market cap reflects the amount of fiat currency invested in a cryptoasset.
This is wrong. Consider an influx of new investors to a project with low trading volume. Absolutely not. The new market cap merely reflects the price that the last investor was willing to pay.
Another example: take a new cryptocurrency with a circulating supply ofAll that said, when considered with other indicators, crypto market cap can be useful.
Liquidity measures the degree to which an asset can be bought or sold without causing a major price change.
In most cases, high volume and high liquidity mean a healthy market that is difficult to manipulate. Indeed, a classic way to measure the quality of a cryptocurrency is to check whether its trading volume is equal to or greater than its market cap.
Crypto market cap has major drawbacks, yet it remains the go-to indicator for many investors, analysts, and commentators.
This is unfortunate. At best, market cap can serve as a jumping-off point for evaluating a cryptocurrency.
But it is only truly helpful when used in tandem with other metrics like trading volume. Although market cap is, at best, an incomplete indicator of cryptoasset quality more on that herein some cases, it can be a useful starting point for analyzing an investment opportunity.
For example, high market cap could indicate that a cryptocurrency is resistant to volatility. Low market cap indicates the opposite, that major news events or whale activity can significantly impact price.
However, crypto market cap can only take you so far. Over time, the simplicity of market cap has made it the most popular way to compare cryptoassets.
For this reason alone, crypto market cap matters. Experienced investors will usually consider multiple indicators, but there are some who base their decisions exclusively on market cap.
Crypto exchanges use market cap as a way to determine which coins to list — coins with higher caps are more likely to make it.
Exchange data aggregators tend to rank projects by market cap. Project owners take market cap seriously enough to spend time and money manipulating the circulating supply or price of their tokens.
This is just one reason why crypto market cap is considered a misleading or unreliable indicator.
As the crypto space matures, better tools will be developed that will provide market participants with in-depth, actionable information.
When that happens, market cap will likely lose its place as the leading crypto indicator. The market reached this level on January 7, Crypto market cap is calculated the same way as stock market cap, by multiplying the circulating supply of an asset by its price in fiat currency e.
The calculation gets trickier when an asset is traded against another asset. Price depends on who makes the calculation.
The general price is calculated as a composite of spot prices used on crypto exchanges. For index funds, which have recently become popular, the calculation is adjusted to include variation in trading pair prices.
The price that you see on online news aggregators Google, for example is usually the average price at which an asset trades on leading exchanges.
In the crypto space, the problem of inadequate pricing is well-known. Most pricing index issuers fail to detail how they price instruments or where they get their data.
At Nomics, we strive to set this right. Our methodology takes the price at which an instrument last traded on each exchange, weighted by the general trading volume over the past 24 hours.
More on our methodology here. When it comes to supply, it is worth noting that the calculation depends entirely on the token and the mechanics of its protocol.
Although Bitcoin has a finite supply 21 millionmost tokens are designed with a dynamic supply that increases over time.
When calculating the market cap of a particular cryptoasset, it is the circulating supply that should be taken into account.
Circulating supply is the number of tokens that are currently available on the market. Circulating supply is a better metric than total supply because it excludes coins that are reserved or locked.
To find Bitcoin's market cap, locate the value in the "market cap" column associated with the Bitcoin record in the table above.
It is worth noting that, due to the finite supply of Bitcoin, at some point, circulating supply and total supply will be equal.
Some investors view low market cap as synonymous with high profit potential. That is why many market participants favor cryptocurrencies with low market caps.
They believe these currencies have more room for price appreciation. Others view low market cap cryptocurrencies as ground-floor opportunities.
Whatever the reasoning, low market cap cryptocurrencies are popular investments. Nomics lists cryptocurrencies with market caps as low as a few thousand dollars.
However, you should avoid choosing an investment by market cap alone. Consider additional factors such as recent price changes, trading volume, circulating supply, and transparent volume, a feature unique to Nomics that shows the percentage of trading volume that occurs on reputable cryptocurrency exchanges.
For more on transparency volume, see here. Market capitalization is often used to indicate the value of a company or stock.
It is calculated by multiplying the total number of shares outstanding by the price per share. Investors calculate the value of a cryptocurrency by multiplying its circulating supply by its current price.
Though stock and crypto investors use the same indicator, the calculation differs in some respects. To calculate the market cap of a company, multiply shares outstanding by the current price per share.
Shares outstanding reflects all stocks that are currently held by shareholders. It even includes restricted shares held by corporate staff and share blocks held by institutional investors.
Price, on the other hand, is affected by internal factors such as profit, expected profit, and plans for growth.
How investors perceive these factors influences supply and demand and determines the price of a stock. To find the market cap of a cryptocurrency, multiply circulating supply by current price.
Polkadot DOT. Cap market cryptocurrency by prices In the world of stocks, the higher the market cap, the safer the investment. Many projects that make big promises are not really designed to succeed in the real world.Circulating supply is similar to shares outstanding but only includes tokens that are available in the market. It excludes coins that are reserved or locked.
The price of a cryptocurrency is usually calculated as an average of the spot price at which the instrument trades on leading exchanges.
Cryptocurrency pricing in the context of index funds happens in a slightly more sophisticated way and is adjusted to include variation in trading pair prices.
Although market cap is used to value both companies and cryptocurrencies, there are differences in the way it is applied.
For instance, shares outstanding takes into account all issued shares, including those held by corporate officers and big investors.
Circulating supply ignores reserved or locked coins. As a result, crypto market cap only includes assets that are available for trading.
If crypto market cap followed the same logic as stock market cap, it would be based on total supply. A far more accurate calculation is achieved by using circulating supply.
For more on the cons of using total supply, see the next question below. Another difference is pricing mechanics.
While most stocks have fixed issuance mechanisms, in the case of cryptocurrencies, many protocols are designed to expand continuously, thus inflating token supply over time.
To compensate, one must analyze market cap in a broader context. The first cryptocurrency, Bitcoin, was launched in This goes to show how young the cryptocurrency market is compared to the stock market, which has had centuries to mature.
We often make the mistake of copying stock market metrics and trying to shoehorn them into the world of cryptocurrencies.
So is the case with market capitalization. Market cap is applied to both stocks and cryptocurrencies, but there are differences in how the metric works in each case.
Comments:
Journee says:
25.10.2021 21:50
....Live Crypto Prices and Cryptocurrency Market Cap. The total cryptocurrency market cap is currently $ T, a decrease of % over the last 24 hours. Read more. The world's biggest cryptocurrency exchange. Trade Now. It can be a meaning in and of itself. ...
Della says:
04.03.2022 10:42
....Do note that this is simply a calculation of taking BTC's ATH market cap divided by the current circulating supply to get the price, regardless of the potential of the Altcoin or whatever. Interestingly, even if DOGE managed to reach BTC's ATH, it will only be ~$10, and not $ or $ as some of the posts claimed. Obviously, it would be an open thread and not just confined to GirlGAF and there's nothing with other people posting there but it does have to be done correctly. ...
Freya says:
12.07.2021 19:18
....Live Cryptocurrency Market Cap, prices, charts, trades, volumes, historical data, crypto news and more. Buy, sell and trade top cryptocurrencies. I am trying to get the YTD run rate (i. ...
Evelynn says:
25.04.2022 18:33
....51 rows · Coin CRO. $ %. $37,, $3,,, Trade. . What does it mean to ask the 'meaning' of life? Does one intend to ask what one 'ought to do' in life or does one intend to ask if there is any meaning to life, like words have meaning. ...
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