Bitcoin
BTC$57 317.30

6.05%

Ethereum
ETH$4 329.98

7.71%

Binance Coin
BNB$609.13

5.53%

Tether
USDT$1.000821

-0.05%

Solana
SOL$201.89

8.26%

Cardano
ADA$1.59

7.07%

Understanding Crypto Market Cap


17 Sep 2018

#Bitcoin

With 1855 Cryptocurrencies available and a total market cap of $ 212 Billion, the cryptocurrency market may be worth exploring for investors with an appetite for risk or a need to diversify. But what exactly does the crypto market cap represent, why does it matter, and how can it help you evaluate a coin?  

How Is It Calculated?


Market Capitalisation is a metric that gives us information on the relative size of a cryptocurrency.  We can calculate it by multiplying the number of outstanding coins in circulation with their current price. 

Market Cap = Price X Circulating Supply.

How Can We Calculate the Market Cap of Bitcoin?


On 19/8/2018 the circulating supply of Bitcoin was 17,219,225 BTC and the price per BTC was $6,384.91. According to our formula, the total market cap of Bitcoin, in this case, is $109.9 Billion.

Why is the Cryptocurrency Market Cap Important for Investors?


Contrary to the stock and bonds market, in the cryptocurrency market, financial statements that could provide metrics needed for investors to make decisions are not published by the crypto teams. Therefore, the market cap figure provides a quick and easy way to estimate the value of a particular cryptocurrency or, if you are really into calculating, the entire crypto market. 

What Can We Learn from Observing the Cryptocurrency Market Cap


The truth is that by analysing and observing the crypto market cap of the various coins – such as Bitcoin, Ripple, Ether and Litecoin – we can gather valuable insight into each coin.  A high or low market cap can reveal a coin that is resistant to volatility, or vulnerable. 

Coins with small market caps are more volatile to the external environment and to sudden positions of large buyers. The price of a token with a small market cap can crash instantly if, for example, big traders cooperate in selling their coins at the same time. On the other hand, the probability of such a thing happening is smaller with Bitcoin and Ethereum, which have large market caps and are not easily manipulated. 

The Downside of the Crypto Market Cap


Because the crypto market cap is a number that reflects only the amount of circulating coins and their price, it does not give us any information on how the coins are distributed, or how many individuals own cons – and in what amounts. This is a downside for the reason already mentioned above; if big traders and/or developers hold large amounts of the circulating coins, then they can retain control over or cause havoc with its direction. 

To Conclude


A cryptocurrency’s market cap is a quick way to evaluate the coin’s value. A crypto market cap that is strong is indicative of a healthy coin. However, if developers or big traders hold a large amount of the coins, the market cap can mislead the investor. That is why it is important to combine it with other metrics and research before making an investment decision. 


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 78.8% 42 $57 317.30 6.05% 0.30% $1 082 493 482 173 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 82.4% 32 $4 329.98 7.71% 4.10% $513 241 890 424 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 74.4% 53 $609.13 5.53% 7.08% $101 603 589 194 BNB 7 days price change
4 Tether (USDT) USDT Tether predictions 94.8% 1 $1.000821 -0.05% 0.02% $73 181 280 297 USDT 7 days price change
5 Solana (SOL) SOL Solana predictions 69.2% 65 $201.89 8.26% -7.12% $61 384 548 102 SOL 7 days price change
6 Cardano (ADA) ADA Cardano predictions 67.2% 60 $1.59 7.07% -11.22% $52 994 241 732 ADA 7 days price change
7 XRP (XRP) XRP XRP predictions 74.4% 51 $0.977796 7.55% -5.78% $46 111 849 720 XRP 7 days price change
8 USD Coin (USDC) USDC USD Coin predictions 91.2% 2 $1.000263 -0.02% 0.06% $38 400 714 618 USDC 7 days price change
9 Polkadot (DOT) DOT Polkadot predictions 66% 75 $36.34 10.39% -9.36% $35 892 371 416 DOT 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 62.4% 74 $0.205075 3.31% -7.25% $27 132 327 967 DOGE 7 days price change
11 Avalanche (AVAX) AVAX Avalanche predictions 66.8% 75 $113.04 7.34% -14.94% $25 302 145 754 AVAX 7 days price change
12 SHIBA INU (SHIB) SHIB SHIBA INU predictions 62% 77 $0.000040 5.31% -9.51% $21 695 676 622 SHIB 7 days price change
13 Crypto.com Chain (CRO) CRO Crypto.com Chain predictions 56% 90 $0.763021 5.29% 12.83% $19 276 211 216 CRO 7 days price change
14 Terra (LUNA) LUNA Terra predictions 64.8% 72 $48.97 15.39% 19.64% $19 240 048 048 LUNA 7 days price change
15 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 74.4% 46 $56 434.66 5.79% -0.91% $14 304 839 863 WBTC 7 days price change

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