Coins by Market Cap: A Comprehensive Guide
What Are Coins by Market Cap?
Coins by market cap are cryptocurrencies ranked based on their total market value. Market cap is a key metric that provides insight into a coin’s size, liquidity, and overall market influence. It’s calculated by multiplying the price of the cryptocurrency by its circulating supply.
Why Coins by Market Cap Matter
Coins by market cap give you a direct view of how the market values different cryptocurrencies. Large-cap coins tend to be stable and less volatile, while mid and small-cap coins might offer higher returns with higher risks.
Visual Infographic: Market Cap Categories
- Large Cap (Over $10B): Stable coins like Bitcoin and Ethereum.
- Mid Cap ($1B – $10B): Coins with growth potential but moderate risk.
- Small Cap (Below $1B): Riskier coins that could offer substantial rewards.
How to Calculate Market Cap?
Market Cap = Price of Coin × Circulating Supply
For example, if a coin is priced at $50 and has 10 million coins in circulation, its market cap would be $500 million. This is essential when ranking coins by market cap.
Top Coins by Market Cap for 2024
As of now, here’s a deeper look at the top-ranking coins:
1. Bitcoin (BTC)
- Market Cap: $1.1 trillion
- Description: The first and most well-known cryptocurrency, Bitcoin dominates the market and accounts for over 40% of the total cryptocurrency market cap.
2. Ethereum (ETH)
- Market Cap: $450 billion
- Description: The second-largest cryptocurrency by market cap, Ethereum powers decentralized apps (dApps) and is famous for its smart contract functionality.
Investing in Coins by Market Cap
When choosing which coins to invest in, understanding market cap is vital. Large-cap coins are generally safer bets for long-term stability, while small-cap coins may offer higher growth potential, though they come with more risk.