What sets our list apart is we aggregate cryptos from various exchanges to give a full picture of the crypto market and not just for coins on a particular exchange. Every cryptocurrency listed on CoinGecko is manually vetted and curated by our operational team. We vet each coin to reduce the risk of scams and remove inactive coins or dead projects to keep our list relevant to the market. If you can’t find a coin on CoinGecko, try searching on our DEX tracker GeckoTerminal.
What is a cryptocurrency exchange?
Cryptocurrency was invented by Satoshi Nakamoto, which is the pseudonym used by the inventor of Bitcoin. Following the invention of Bitcoin, thousands of projects have attempted to imitate Bitcoin’s success or improve upon the original Bitcoin design by leveraging new technologies. Like BTC, ETH too fell sharply from the intraday high of $4,365 to the intraday low of $4,280, before recovering somewhat to the current price. This can offer investors wider market insight and can help them to formulate decisions about whether now is the right time to invest. Bitcoin has gained 2% on the day to reclaim $114,000 while Ether was up almost 3% to reach $4,435 at the time of writing.
Measuring Market Scale and Stability
But relying solely on market cap is like using a compass without a map. Combine market cap with trading volume, token unlock timelines, treasury distribution, and protocol usage metrics. Whether you’re looking at Bitcoin’s trillion-dollar footprint or a low-cap gaming coin, the metric provides a common reference point.
- Market cap means the total value of a cryptocurrency, found by multiplying the coin’s price by the number of coins in circulation.
- While market cap is important, it’s only one of many factors to consider when investing in a coin.
- Even though you can freely transact with these tokens, you cannot use them to pay Ethereum transaction fees.
- As of early 2025, the total global crypto market cap stands at $3.71 trillion.
- This comes amid expectations that the US Federal Reserve is set to cut interest rates at the policy meeting planned for next week.
How to calculate a cryptocurrency market cap
Staying informed and keeping up with the latest market data will help traders navigate the dynamic world of cryptocurrencies to make informed decisions. Market cap, on the other hand, represents the total value of a cryptocurrency based on its price and circulating supply. Knowing a coin’s crypto market cap can help crypto users make better investments, as they’ll have a fact-based look at how a specific coin/token is performing.
Not sure what volume really tells you?
Market cap is a useful metric for comparing the relative size and popularity of different cryptocurrencies, but it isn’t always the best standalone measure. Other factors, such as liquidity, trading volume, technology, use case, tokenomics, and community support, are also important to consider when evaluating or comparing cryptocurrencies. Just like traditional financial markets, the balance of demand and supply significantly impacts cryptocurrency prices and, by extension, market cap. When more people buy into a cryptocurrency, its price rises, which leads to how to stake atom on coinbase an increase in market cap.
This text is informative in nature and should not be considered an investment recommendation. Any investment or trading is risky, and past returns are not a guarantee of future returns. Litecoin is an alternative cryptocurrency to Bitcoin that was created in 2011. It is the number 5 cryptocurrency by market cap and the third-oldest cryptocurrency that still exists. A fully diluted market cap shows what the total value of a coin would be if all possible coins were in circulation.
What is market cap in cryptocurrency?
It is important for users to be aware of these factors and conduct thorough research before making buying decisions. Another factor that can impact market cap is the level of adoption and use of an asset. For example, if a cryptocurrency is widely accepted and used in various industries, its market cap is likely to be higher.
Investor sentiment can significantly affect market cap, which often shifts according to current news and market trends. Positive sentiment leads to higher prices and can boost market cap, while negative sentiment has the opposite effect. Cryptocurrencies with fixed or limited supplies may increase in value as demand grows, affecting the market cap. Crypto indices like those from Bitwise or CoinShares often use market cap to weight holdings.
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 term how to access airport lounge DeFi (decentralized finance) is used to refer to a wide variety of decentralized applications that enable financial services such as lending, borrowing and trading.
- A cryptocurrency’s market capitalization is essential when deciding which tokens are worth looking at and investing in.
- They’re often considered long-term investments due to strong liquidity and institutional backing.
- Small cap cryptocurrencies attract short-term traders looking for big gains.
- By tracking market capitalization, investors can ascertain whether or not a cryptocurrency is undervalued or overvalued, and determine whether or not investing in it is a wise decision.
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 airvpn customer review lot of relevance in the crypto market. The crypto top 10 changes frequently because of the high volatility of crypto prices.
Yes, a coin’s market cap can be manipulated, especially if it has low trading volume and few buyers or sellers. Market cap usually uses circulating supply because it reflects what is actively being traded. It gives the most realistic snapshot of a coin’s current value in the market.