With the advent of new technology and their applications in the world of finance, both businesses and individual investors need to adapt to new-age payment systems. Cryptocurrency is one such option to consider. However, before you invest in one, it is important to understand the cryptocurrency market cap.
Basically, the market capitalization of a cryptocurrency is the total value of all the crypto in the market. Hence, you can find the market cap of a crypto like Bitcoin by multiplying the total coins in circulation by a single coin’s market price.
Therefore, to learn the market cap of the 10 most valuable cryptocurrencies, read on to the end of the article.
What Is the Cryptocurrency Market Cap?
When it comes to popular investment options like stocks, the market cap of a company’s stock is the total USD value of all its shares. Similarly, the market cap of a cryptocurrency is the total value (in USD) of all the currencies in circulation.
Here’s the formula to find the cryptocurrency market cap:
Market Cap = Total Number of Coins (of any crypto) x Price of a Single Coin
Think of market cap as a rough gauge that shows the likelihood of an asset’s stability. However, there are still volatilities in the market. For instance, Bitcoin, which has the greatest market cap, still faces price volatility.
Despite that, as a bigger ship has the capability to get past harsh weather, a crypto with a bigger market cap is a more stable investment than one with a smaller market cap.
On the other hand, if a cryptocurrency has a smaller market cap, it shows volatility due to the changing whims of the market. For instance, after buying such crypto, you can either see huge gains or sudden losses during its early stages.
10 Most Valuable Cryptocurrencies by Market Capitalization
Here are the ten most valuable cryptocurrencies in terms of market capitalization:
1. Bitcoin – BTC ($1.94 Trillion)
Bitcoin is the most popular and valuable cryptocurrency in the world and has been operating since 2009. It is a digital currency that runs on a decentralized blockchain. Moreover, its ownership is transferable.
You can speculate or invest in Bitcoin if you want to grow your money. On the other hand, as a consumer, you can use Bitcoins to make purchases.
2. Ethereum – ETH ($330.57 Billion)
Ethereum has its own blockchain system and its own coin, Ether (ETH). In fact, it allows other cryptocurrencies to run on the platform. Also, it enables the execution of smart contracts.
The goal of the blockchain is to create a global platform for decentralized applications. This way, they can allow users to create and run software without any censorship, fraud, or downtime.
3. Ripple – XRP ($144.13 Billion)
The XRP Ledger has been running since 2012. Basically, it is a decentralized technology that allows open-source and permissionless access. The biggest advantages of using this ledger are that it is affordable, fast, scalable, and comes with green attributes.
Moreover, the XRP Ledger is also one of the first decentralized Digital currency exchanges. Also, it comes with built-in custom tokenization capabilities.
4. Tether – USDT ($140.52 Billion)
This blockchain platform helps to convert fiat currencies and use them digitally. Basically, it focuses on creating an alternative financial system that uses a modern approach to money.
Moreover, Tether also allows its customers to perform transactions with their traditional currencies on its blockchain platform. In fact, there is no volatility and complexity in using such digital currencies.
Furthermore, it is also possible to perform cross-border transactions on the Tether platform.
5. Solana – SOL ($99.98 Billion)
Solana is an open-source blockchain project that focuses on offering decentralized finance (DeFi) solutions. It has been officially working since 2020. Its protocol helps users to create a decentralized app (DApp).
Moreover, it wants to scale its blockchain by combining proof-of-history with proof-of-stake consensus mechanisms. Overall, its focus is to make decentralized finance accessible to all.
6. Binance Coin – BNB ($81.87 Billion)
Primarily, Binance is the biggest crypto exchange in the world in terms of trading volume. Here, it focuses on popularizing crypto exchanges in the financial world.
Moreover, the Binance network also consists of Binance Chain, Binance Smart Chain, Trust Wallet, and Binance Academy. All these platforms use blockchain to make new-age finance more popular.
7. USD Coin- USDC ($55.1 Billion)
This is a stable cryptocurrency that works with the US dollar on a 1:1 basis. Here, every USD coin has the backing of 1 USD from the US Federal Reserve. Basically, this US $1 backing is a mix of cash and short-term US Treasury bonds.
Here, the point of this stablecoin is to facilitate cashless transactions and offer stability. Hence, if you invest in USDC, it will offer some stability at times of crypto volatility.
8. Dogecoin – DOGE ($39.11 Billion)
Dogecoin started as a meme on the Internet. This is an open-source digital currency that is forked from Litecoin. It became popular after a few posts from Elon Musk promoting it on Twitter.
According to its creators, Dogecoin is a funny and meme-ish cryptocurrency. In fact, it wants to appeal to more than the core crypto audience.
9. Cardano – ADA ($26.18 Billion)
This blockchain platform works with a proof-of-stake consensus mechanism. Primarily, it is an open-source project that wants to transfer power from unaccountable places to margins to individuals. Overall, it wants to create a secure, transparent, and fair society.
With the ADA token, owners are able to participate in the network’s operation. Hence, people who hold the crypto have the right to vote for software changes.
10. Tron – TRX ($19.3 Billion)
Tron has been operating since 2017. Earlier, they were ERC-20 tokens on the Ethereum platform. However, after a year, the owners created their own network. Here, the platform focuses on offering full ownership rights to digital content creators.
Hence, the software supports smart contracts, blockchain systems, and DApps. Moreover, its transaction model is similar to that of Bitcoin.
Wrapping Up
Now you know about the top ten cryptocurrency market cap. However, to find the market cap of a particular cryptocurrency, you need to multiply the total number of coins of that crypto with a single coin’s current price. Make sure to use this formula when you want to know the market cap of a crypto coin.
Do you have more information to offer regarding these crypto options? Please share them in the comments section below.
