Cryptocurrency Prices by Market Cap

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What is Crypto Market Cap?

The market cap of a cryptocurrency is the total value of all coins of a particular cryptocurrency that have been mined or traded. Market capitalization is used to determine the ranking of cryptocurrencies. The higher the market capitalization of a particular cryptocurrency, the higher it’s ranking and market share. The market cap of a cryptocurrency is calculated by multiplying the total number of coins in circulation by their current value. For example, to calculate the market capitalization of Ethereum, all you have to do is multiply the total number of Ethereum in circulation by the current price of one Ethereum and you will get its market capitalization.

How to compare Cryptocurrency’s, Market Cap?

Crypto market cap can be divided into three categories:

  • Large-cap cryptocurrencies (>$10 billion)
  • Mid-cap Cryptocurrencies ($1 billion – $10 billion)
  • Small-cap cryptocurrencies (<$1 billion).

As a financial metric, the market cap allows you to compare the total traded value of one cryptocurrency to another. Massive cryptocurrencies like Bitcoin and Ethereum have a market cap of over $10 billion. They usually consist of protocols that have shown track records, and have a vibrant ecosystem of developers who maintain and enhance the protocols as well as build new projects on top of them. While market cap is a simple and intuitive comparison measure, it is not an accurate point of comparison. It may appear that some cryptocurrency projects have increased their market capitalization through price fluctuations and tokenization of their supply. Therefore, it is best to use this metric as a reference along with other metrics such as trading volume, liquidity, fully diluted ratings, and fundamentals during the research process.

Why are Cryptocurrency Prices Different on Exchanges?

You may notice that cryptocurrencies listed on different exchanges have different prices. The reasons for this are complex, but simply put, cryptocurrencies are traded on different exchanges and in different markets with different economic conditions, liquidity, trading pairs, and offers (eg derivatives/leverage), all of which affect the price in their own way.