What Is Cryptocurrency Market Cap (Market Capitalization)? (2024)

Market capitalization illustrates the overall size of a cryptocurrency’s place in the market.

To calculate a coin’s market cap, you multiply the number of coins that have been issued by the price of a single coin. For example, on July 21, 2021, the supply of Ether was 116.8 million coins. Multiply that by the coin price of 1,588.61 euros, and you arrive at the Ethereum market cap of 185.5 billion euros.

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You can use market cap to compare and rank coins within the crypto market. For example, the Fantom token has a price of 0.145 euros and a circulating supply of 2.54 billion tokens, for a crypto market cap of about 370 million euros. That’s about 1/500th of Ether’s market cap, which is understandable since FTM is primarily a governance token intended for internal use on the Fantom platform.


Market cap shifts and varies along with the prices and circulating supply of crypto coins and tokens, but relative rankings are relatively stable. Here are the top 10 cryptos by market cap in U.S. dollars in mid-July 2021:

  1. Bitcoin: $578.1 billion
  2. Ether: $218.3 billion
  3. Tether: $62.0 billion
  4. Binance Coin: $47.1 billion
  5. Cardano: $36.1 billion
  6. USD Coin: $26.8 billion
  7. Ripple: $25.2 billion
  8. Dogecoin: $23.6 billion
  9. HEX: $22.9 billion
  10. Polkadot: $11.3 billion
What Is Cryptocurrency Market Cap (Market Capitalization)? (6)


Cryptos with higher market caps generally have more investors and more influence over the price of other coins and tokens. That’s one reason a cryptocurrency’s market cap is the customary basis for ranking it within the crypto market. When you’re evaluating a particular crypto’s place in the market, price alone is not enough. Market capitalization is a more accurate measure.

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Market cap can also reveal trends. When a group of cryptos related to decentralized finance applications or NFT trading begin rising or falling in value, for example, it’s a sign that the market segment is attracting or losing investors.

NOTE

This text is informative in nature and should not be considered an investment recommendation. It does not express the personal opinion of the author or service. Any investment or trading is risky, and past returns are not a guarantee of future returns. Risk only assets that you are willing to lose.

What Is Cryptocurrency Market Cap (Market Capitalization)? (2024)

FAQs

What Is Cryptocurrency Market Cap (Market Capitalization)? ›

Definition. For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It's calculated by multiplying the number of coins in circulation by the current market price of a single coin.

What is market capitalization in cryptocurrency? ›

Market capitalization (or market cap) is a metric used in both traditional finance and cryptocurrency markets. It represents the total value of a specific cryptocurrency and can be calculated by multiplying the current price per token by the total number of coins in circulation.

What do you mean by market cap? ›

Market cap is the total dollar value of a company's outstanding shares of stock. For example, if a company has 1 million shares of outstanding stock and the stock currently trades at $50 per share, then its current market cap is $50 million.

What is mcap crypto? ›

Market Capitalization/Market Cap/MCAP definition: Total value of a cryptocurrency, calculated by multiplying its price by the total number of tokens. "Market Capitalization" or "Market Cap" plays a pivotal role in assessing the value and significance of a particular digital asset.

What is the CoinMarketCap? ›

CoinMarketCap is the world's most-referenced price-tracking website for cryptoassets in the rapidly growing cryptocurrency space. Its mission is to make crypto discoverable and efficient globally by empowering retail users with unbiased, high quality and accurate information for drawing their own informed conclusions.

What is the relationship between market cap and price in cryptocurrency? ›

Market cap is the total value of a cryptocurrency calculated by multiplying its current price by the total circulating supply. It affects crypto prices by influencing investor sentiment and perceived value, as higher market cap can indicate higher demand and potential stability.

What is market cap and volume in crypto? ›

Market cap is the value of the asset based on its circulating supply and market price. Trading volume, on the other hand, indicates the interest investors have in buying or selling the asset.

Is market cap equal to assets? ›

Market cap is the total number of company's shares multiplied by the current market price of the share. While total assets of a company are the assets/ resources owned by the company for earning income. There is no correlation between these two elements.

Does market cap include cash? ›

Market cap vs.

The enterprise value of a company is the total value of a company's assets (including equity and cash) minus all outstanding debt. The market cap is also not necessarily the “price” the company would cost in a merger or acquisition.

Is market cap higher than equity? ›

Market capitalization value is nearly always greater than equity value since investors figure in factors such as a company's expected future earnings from growth and expansion.

Does market cap affect crypto prices? ›

Liquidity Indicator: Higher market cap coins typically offer better liquidity, making it easier to buy or sell. Trend Analysis: Observing changes in market cap over time can provide insights into potential price movements and the overall health of the market.

How to calculate market cap of crypto? ›

To calculate a coin's market cap, you multiply the number of coins that have been issued by the price of a single coin. For example, on July 21, 2021, the supply of Ether was 116.8 million coins. Multiply that by the coin price of 1,588.61 euros, and you arrive at the Ethereum market cap of 185.5 billion euros.

What determines crypto prices? ›

Bitcoin's price is primarily affected by its supply, the market's demand, availability, competing cryptocurrencies, and investor sentiment.

Who owns the most Bitcoin? ›

Who owns the most Bitcoin in the world? The top Bitcoin holder is still believed to be Satoshi Nakamoto, the anonymous creator of Bitcoin, who reportedly holds around 1.1 million BTC across many wallets. Despite this large holding, the top 10 holders collectively only possess about 5.5% of the total Bitcoin supply.

Which crypto will boom in 2024? ›

Top 10 Cryptos in 2024
CoinMarket CapitalizationCurrent Price
Dogecoin (DOGE)$23.8 Billion$0.1653
Tron (TRX)$10.1 Billion$0.1152
Polkadot (DOT)$10.2 Billion$7.12
Cosmos (ATOM)$3.4 Billion$8.64
6 more rows
Apr 15, 2024

Can you withdraw money from CoinMarketCap? ›

To withdraw, log into your account, then click on "Wallet" and "fiat and spot". Click "Withdraw" then select "Fiat". …

Is higher market cap better? ›

A high market cap signifies that the company has a larger presence in the market. Larger companies may have less growth potential than start-up firms, but established companies may be able to secure financing cheaper, have a more consistent stream of revenue, and capitalize on brand recognition.

Why is low market cap good? ›

And because they are smaller, small-cap share prices have a greater chance of growth. 1 This means they have more potential for investors to earn money faster. In general, small-cap stocks are thought to be more volatile than big-cap stocks and thus provide both greater risk but also opportunity.

What was the highest crypto market cap? ›

Total Cryptocurrency Market Cap: $2,213,634,830,278
RankName (Symbol)Market Cap
1Bitcoin (BTC)1,186,924,905,732
2Ethereum (ETH)363,080,420,281
3Tether USDt (USDT)110,535,776,059
4BNB (BNB)83,624,551,608
77 more rows

What is the difference between liquidity and market cap? ›

Market cap is a valuation measure that reflects how much the market thinks a company is worth. It is calculated by multiplying the share price by the number of shares outstanding. Dollar volume is a liquidity measure that reflects how easy it is to trade in and out of a stock.

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