If you are new to the investments environment, then you must learn how important market capitalization is. Market cap is the total value of a company, which in the case of the crypto market, is the total value of a specific cryptocurrency. It is calculated by multiplying the total number of coins times its price. For example, if 100 ETH were sold for 1$ each, then the market cap of Ethereum is 100$ (If you don’t know anything about ETH, check out our other post).
So why is market capitalization important? It is mainly used for evaluation, to know whether it is a good option to invest on a cryptocurrency or not. Usually, if the market cap is high, that means that users are interested, which means that more users will be attracted to it and hence the price will rise. If the cap is small, it often means that not many users are interested in the asset, and so the price will not rise. How do you know the size of the market capitalization? This is a usual trend:
- Small cap: under 1 billion dollars
- Medium cap: 1-10 billion dollars
- Large cap: +10 billion dollars
Now that you know more on market capitalization, you might be wondering; which are the cryptocurrencies with highest market caps? Please note that at the time this post is written, the total market capitalization of all cryptocurrencies is 90 billion dollars.
Biggest CRYPTOCURRENCIES by market capitalization
10- Bytecoin (BCN)
Do not confuse bytecoin with bitcoin!! It is a usual mistake!! Bytecoin is BCN, while bitcoin is BTC. With a market cap of 596 million USD, BCN occupies the tenth spot of the cryptocurrencies with the highest market cap. You might notice that it is not very high, in contrast to the above-mentioned total market cap of $90 billion. Therefore, Bytecoin belongs to the small cap cryptocurrency category.
This does not have to be bad at all, in fact, it might be an opportunity for investors to invest in BCN as it might rise in the near future. To know whether it could be a good investment we have to know what BCN may be used for.
Will the market capitalization of BCN rise in the near future? The current price is extremely low, $0.003255, and the daily volume is $13 million. Here you have the live exchanges for BCN (they update every couple minutes):
9- Monero (XMR)
In the ninth place, we have Monero (XMR). Monero’s market cap at the time of writing this post (June 2017), is $648 million. This market capitalization is not far from that of BCN’s and it is still considered small.
The current price for each XMR is quite high in comparison to BCN’s ($44.48), and the daily volume on average is $12 million. Here you have the live exchanges for XMR:
8- Stratis (STRAT)
In the eighth position, we find Stratis (STRAT). By June 2017, the current market capitalization of STRAT is $705 million. Again, we see that is not far off from the ninth place. Considering what we have learned so far, we know that STRAT’s market cap is small. Let’s have a look at the rest of Stratis’ numbers to understand more about this cryptocurrency.
The current price for STRAT is $7.16. Compared to Monero’s price, this one is much lower. The daily volume on average for Stratis $28.5 million. (28 500 000/7.16 = 4 million transacted a day) and the circulating supply is 100 million STRAT. Having a lower price, makes users think that it is a bad investment because the value is not high at the moment. This is a wrong way to think. You have to see what Stratis wants to achieve if it is achieving it and how it achieves it. Being in eighth place is not an easy task, which means that users perceive that STRAT is doing a great work at the moment. Here you have the live exchanges for STRAT (these are adapted to the day you are reading this post):
7- DigitalCash (DASH)
In seventh place, we have DigitalCash DASH. At the current instance, the market capitalization of DASH is $1 billion. Finally, we start seeing mid-range market caps. Which again, does not have to mean it is better than others, it just means it is better perceived by users. DASH is only $500 000 away from BCN, which seems not much, considering the differences in places.
The current price for DASH is $145.44. Compared to the price of the rest of cryptocurrencies we have seen so far, this one is the highest. The daily volume on average for DASH is $33 million. (33 000 000/145.44 = 227 000 DASH transacted per day) and the circulating supply is 7 million DASH. The price on DASH is very high, but despite that, users are willing to buy it. Even though it is in the seventh place, not many are keen to support DASH. A circulating supply of 7 million DASH is quite low when compared to other currencies. If you want to invest in it, please make sure to understand exactly what its purpose is. Here you have the live exchanges for STRAT (these are adapted to the day you are reading this post):
6- Litecoin (LTC)
Litecoin is regarded as one of the top cryptocurrencies out there. If you still do not know anything about litecoin LTC, check out our post. At the moment, the market cap of LTC is around $1.5 billion. It might seem similar to DASH at first glance, however when you dive into some numbers you realize how worthy it is perceived by users.
The current price for LTC is $28.67. It is five times lower than that of Dash, however, the daily volume on average for litecoin is around $400 million. ( 400 000 000/28.67 = 14 million transacted daily) and the circulating supply is 51 million LTC. Now we can observe a huge difference compared to DASH. Users are incredibly interested in LTC, and are in fact making huge transactions in a day (compare the circulating amount and the daily transactions). Here you have the live exchanges for LTC (these are adapted to the day you are reading this post):
5- Ethereum Classic (ETC)
We are already half way through the list and many users get confused between ethereum classic (ETC) and ethereum (ETH). They are two different cryptocurrencies, so do not mix them up. This particular one has been lately rising, and it is thought that it will continue to rise a lot more. Right now, the market capitalization for ETC is $1.6 billion, not far from LTC’s.
The price for one ETC is $17.36 at the time of writing this post, nearly half the price of LTC. The daily volume on average for ETC is four times less than that of LTC; $111 million. (111 000 000/17.36 = 6 million transacted on a daily basis). It is still lower than that of LTC, however, it is still worthy to most users. The circulating supply is 92 million ETC. Here you have the live exchanges for ETC (these are adapted to the day you are reading this post):
4- NEM (XEM)
NEM (XEM) has the highest market capitalization in the mid range, with a value of $2 billion. XEM is not as transacted as ETC, however, it still has a high market cap.
The price for XEM is $0.221545, which is definitely extremely low knowing that it is located in one of the highest positions in the crypto market. This makes us believe that most users might truly believe on XEM’s objective and so they are keen to buy many XEM. The daily volume on average for XEM is $12 million. ( 12 000 000/0.221545 = 54 million transacted a day) and has a circulating supply of 9 billion XEM, which is huge. Here you have the live exchanges for XEM (these are adapted to the day you are reading this post):
3- Ripple (XRP)
We are finally in the top three biggest currencies in terms of market capitalization. In the third, place we find Ripple (XRP). This one has been gaining worth in the last months, and it’s becoming one of the best options for users to invest in. At the time of writing this post, its market cap is $12 billion. This one is the first cryptocurrency which lays in the large capitalization range.
The price for XRP is currently $0.310652. It is very close to the price of XEM, however, the capitalization is six times more. The daily volume of XRP on average is around $390 million, meaning that it has a huge environment of users behind ripple. (390 000 000/0.310652 = 1.3 billion of XRP transacted every day) and the circulating supply is 39 billion XRP. We clearly see the amount of movement XRP has in just one day, which means that users are interested and hence the price will rise. Here you have the live exchanges for XRP (these are adapted to the day you are reading this post):
2- Ethereum (ETH)
The price for ethereum at the moment is $222.33. It is definitely one of the highest prices in the whole crypto market, however, it has many users interested, so it definitely has to do something right for society to approve it. The daily volume of ETH on average is around $530 million, not far from that of ripple’s. (530 000 000/222.33 = 2.4 million of ETH transacted each day) and the circulating supply is 92 million ETH. The difference in scale between XRP and ETH is huge, but the ratios themselves prove to be somewhat similar. Here you have the live exchanges for ETH (these are adapted to the day you are reading this post):
1- Bitcoin (BTC)
The most known cryptocurrency of all, which started back in 2009, is the one with the highest market capitalization and there is no wonder for it. It first started as something no one would ever spend a dollar on, however, right now it has the highest market cap of all, higher than many stocks in the stock market. Bitcoin BTC has a market cap of $39.6 billion.
It seems crazy how BTC has reached this level in less than 5 years. Its price is $2418.03 per BTC. It is absolutely incredible the difference in price compared with the rest of cryptocurrencies, and not even ethereum is close to it. Its daily volume on average is $1.4 billion. (1 400 000 000/ 2418.03 = 580 000 BTC transacted daily) and the circulating supply is 16 million BTC. You might be wondering how it has a higher capitalization than ETH if it has many fewer coins. Well, since it was the first cryptocurrency to appear, it has gained the highest value of all, and since there are so few BTC compared to the rest of networks, it makes sense that it becomes even more valuable. This has all been translated into higher price per BTC. Here you have the live exchanges for BTC (these are adapted to the day you are reading this post):
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And as always…