The year 2017 has been a great ride for the Cryptocurrency Industry. We have seen certain Cryptocurrencies plummet in value then rise again. In fact the top 10 Cryptocurrencies according to Market Cap, as of 14th January 2018 04:00 AM GMT, was worth more than $500 Billion.
We have seen startups mushroom to support the Cryptocurrency industry. We also have heard about so many security issues. Moreover, the number of cryptocurrencies has also gone up. As of 14th January 2018 Tuesday, 04:00 AM GMT, the number of Cryptocurrencies was 1429, according to Coinmarketcap.com .
What is Market Capital for a CryptoCurrency?
In simple words, the market capital refers to the total value of a Cryptocurrency. It is calculated by multiplying the total number of coins(Circulating Supply) by its price. And by observing the formula you can see that Market Capital is not fixed. It may change dramatically over a certain period of time depending on how much one single unit of a cryptocurrency is valued at. For instance, in the mid-December of 2017, we saw the price of one Bitcoin soar up to roughly $20,ooo. During that time period, the Market Cap of bitcoin also rose proportionately. However, Bitcoin didn’t hold that value for long. Soon after Bitcoins value reached its peak it dropped to $12,000. So did its Market Cap.
Why is it significant?
The market cap for a cryptocurrency is a significant indicator of its attractiveness. The higher the Market Cap, the more lucrative it is to invest in. In contrast, if the Market Cap is low for a certain cryptocurrency it is less likely to draw attention.
However, it is not a solid indicator. As the price of one single unit of a cryptocurrency increase the Market Cap will increase as well. Similarly, if the price remains constant for a cryptocurrency but more and more units are mined, the Market Cap will increase.
Category of Market Caps according to their characteristics
Mega Cap– They are the leaders in their industry. Worth more than $200Billion.
Large Cap– Worth between $10Billion-$200Billion. Examples include Microsoft, WalMart, General Electric, IBM.
Mid Cap– Worth between $2Billion-$10Billion.
Small Cap– Worth between $300M-$2Billion.
Micro Cap– Also known as Penny Stocks. Worth between $50Million-$300Million.
Nano Cap– Worth less than $50 Million.
Now that you know what Market Cap is, why is it significant and what are the basic categories of Market Cap, let us see which Cryptocurrencies are the leaders in the industry according to their Market Cap.
Note-All the values were recorded on 14th January 2017 04:00 AM GMT
- Market Cap – $241Billion
- Value of one Bitcoin – $14,385.90
- In Circulation-$16Million BTC
- Market Cap – $134Billion
- Value of one Ethereum – $1,390.24
- In Circulation – $96Million ETH
- Market Cap – $76Billion
- Value of one Bitcoin – $1.97
- In Circulation – $38Billion XRP
4) Bitcoin Cash
- Market Cap – $45Billion
- Value of one Bitcoin Cash – $2,708.75
- In Circulation – $16Million BCH
- Market Cap – $21Billion
- Value of one Cardano – $0.83820
- In Circulation – $25Billion ADA
- Market Cap – $14 Billion
- Value of one LITECOIN – $257.26
- In Circulation- 54Million LTC
- Market Cap – $13 Billion
- Value of one NEM – $1.46
- In Circulation-$8 Billion XEM
- Market Cap – $11 Billion
- Value of one STELLAR – $0.647227
- In Circulation – 17 Billion XLM
- Market Cap – $10 Billion
- Value of one IOTA – $3.85
- In Circulation – 2Billion MIOTA
- Market Cap – $9Billion
- Value of one EOS – $3.85
- In Circulation – $2 Billion EOS
This top 10 list was much different in 2017, what do you think will happen in this whole 2018? Do you think any new one will join this top 10? Share your opinion in the comments.