Market Cryptocurrency Capitalization: what it is, how it is calculated, where to look + TOP-10 rating

314

Capitalization is a word that comes from traditional financial instruments. This is the name of the total market value of all assets in circulation (services / goods market, industry, individual company). With cryptocurrencies, the situation is more complicated, since they do not have physical form, collateral or country-specific affiliation. However, the market capitalization of a cryptocurrency is still very important.

Capitalization map of the top 20 cryptocurrencies:

Bitcoin capitalization chart for 2017-2019:

What is market capitalization

Market cryptocurrency capitalization is the total value of all digital coins in circulation at the moment. A high indicator may indicate both the high value of the coin and the large amount of it in circulation. In either case, this is an important parameter for investors. The RK is growing – it means that the market is developing, the cryptocurrency is becoming popular.

There is no need to deny that most digital currencies are not backed by anything and rest only on the belief of the holders in their prospects. But if a currency is bought, it means that it has potential, people need it, and over time it will expand its scope of use and grow in price.

How is it calculated

Everyone can calculate the capitalization of any cryptocurrency. To do this, you only need to know two parameters:

✅  the total number of coins in circulation,

✅  coin rate (usually taken in US dollars)

And multiply these indicators:

Rate * Amount in Turnover = Market Capitalization

For example, let’s calculate the RK Bitcoin and Ripple, as completely opposite currencies in many respects. All data is taken as of April 23, 2019.

  1. For Bitcoin, the indicator will be $ 5,486.89 * 17,662,587 = $ 96,912,643,153
  2. For Ripple $ 0.301139 * 42,020,265,728 = $ 12 649 334 319

You can view the raw data on any of the many sites that display cryptocurrency indicators in real time, for example, CoinGecko.

Total cryptocurrency market capitalization

Let’s start by defining the total market capitalization. This is the total value of Bitcoin, Ethereum, Litecoin, Neo and all other trading crypto assets. Today it is equal to $ 176 72 394 693, the dominance of Bitcoin is 54.51%. This means that more than half of all funds invested by users are invested in Bitcoin.

Real-time cryptocurrency capitalization information:

  Market Capitalization: $2,101.89 B

  Volume in 24H: $82.30 B

  Dominance of BTC: 37.62%

Bitcoin Dominance Index

Bitcoin Dominance Index (BTC Dominance) is the percentage of the total cryptocurrency market capitalization that Bitcoin currently occupies. You may have seen this percentage on Coinmarketcap, but haven’t wondered what it means. But in fact, this is a very important indicator of the state of the entire crypto market. Knowing how to use it gives you limitless prospects.

How does this information affect the market?

Until 2016, BTC dominated very strongly in relation to altcoins, its share reached 90%. But then it began to decline, and altcoins were rapidly increasing in popularity. Understanding the downtrend and upward trends, their sequence and cyclicality, analysts predict the further behavior of cryptocurrencies. We can say that all forecasting is based on this.

TOP-10 cryptocurrencies by capitalization

Brief information on 23/04/2019:

  1. Bitcoin. Digital Gold, the world’s first cryptocurrency. Current capitalization – $ 97,939,217,990, exchange rate – $ 5.545.52.
  1. Ethereum. A cryptocurrency based on the principle of smart contracts and providing extensive opportunities for developers. Current capitalization – $ 18,477,589,624, exchange rate – $ 174.64.
  2. XRP (Ripple). A network with fast and cheap payments, which is actively used in banking structures. Current capitalization – $ 13,670,657,454, rate – $ 0.325565.
  3. EOS. A platform for building decentralized WebAssembly applications. Current capitalization – $ 5,531,851,824, exchange rate – $ 5.32.
  4. Bitcoin Cash. One of the clones of Bitcoin with slightly improved functionality. Current capitalization – $ 5,352,035,307, exchange rate – $ 301.52.
  5. Litecoin. “Lightweight” fork of Bitcoin. Current capitalization – $ 4,789,765,492, exchange rate – $ 77.93.
  6. Binance Coin. A token of the cryptocurrency exchange of the same name, which helps to save on commissions. Current capitalization – $ 3,420,938,431, exchange rate – $ 23.68.
  7. Cardano. Combination of smart contracts and layered architecture. Current capitalization – $ 2,410,528,246, rate $ 0.077636.
  8. Stellar Lumens. A platform that supports digital IOUs. Current capitalization – $ 2,179,984,352, rate $ 0.112414.
  9. Tether. A stable currency, the value of which is always $ 1. Current capitalization – $ 2,067,310,281.

What affects its indicator

We have already indicated the direct factors – the exchange rate and the total number of banknotes in circulation. But there are many indirect factors that affect the indicator. Among them:

✅  General interest in cryptocurrency. For example, Bitcoin is a confident leader, because everyone has heard about it at least once, even those who have nothing to do with finance.

✅  User confidence. Therefore, the capitalization of new currencies can remain low for a long time and grow gradually or in leaps and bounds as confidence grows.

✅  Scheme of behavior of large market players.

✅  News from analysts, opinion of well-known experts on the potential of this or that project.

✅  The presence of modern innovations in the currency that can become a noticeable breakthrough in its field.

✅  The reaction to cryptocurrency by the media and government authorities. Implementing laws that restrict or encourage digital money.

For example, in December 2017, when Bitcoin rose to its maximum, many reasons were successful at once: in Japan, cryptocurrencies were legalized, SegWit2x was developed, the media began to massively disseminate information. As a result, demand skyrocketed to previously unseen positions.

Where to see statistics on capitalization for today

There are several services for this, for example:

Btcnewsweb.com

On the site you can see the current cryptocurrency rates and find out information about capitalization, which is updated online. Almost all existing coins are represented. Also, the site has a lot of other useful information about cryptocurrencies and working with it.

Coinmarketcap

The largest statistical resource on the crypto market and cryptocurrencies. Shows information about market capitalization, price, trading volume of several thousand tokens and coins, from the most popular to the least known.

Information is collected from crypto sites around the world and updated in almost real time.

Coincheckup

The functionality of this site is even wider than that of the previous one. In addition to information about exchange rates and capitalizations of currencies, there is an opportunity to view historical data on the state of the market, conduct in-depth analysis, look at the section with forecasts, and see the activity of developers.

The ability to filter currency by several criteria is quite nice – for example, Platform, Gaming, Privacy, etc.

Cryptocompare

A useful site for investors that allows you to track the results of their transactions, the total value of the crypto portfolio, its dynamics, the profitability of each specific token. There is a possibility of risk analysis.

In addition to information about crypto, the site provides information about cryptocurrency exchanges, mining, wallets. In one of the sections you can play games like an online casino.

CoinGecko

Another popular data tracking tool for all popular cryptocurrencies and not so much. It has an easy-to-use and intuitive interface.

In addition to the most popular data, the service provides an opportunity to find out how resistant a particular currency is to a 51% attack. And with the help of its own special algorithm, it builds a separate list of leaders, which often differs from the generally accepted one.

Conclusion

Knowing what cryptocurrency capitalization is and being able to use this knowledge is one of the primary tasks of every investor or trader. Fortunately, today there are a lot of convenient and informative tools on the Internet, with the help of which the analysis becomes a little more accessible even to inexperienced users.

Leave A Reply

Your email address will not be published.