Cryptocurrency market capitalization is a way in which the various contenders can be ranked based on size, calculated by multiplying price by the supply of the currency that is in circulation.
Market capitalisation is essential for determining the size of a cryptocurrency, which some professionals argue is an overlooked statistic when so much attention is often unnecessarily paid to price alone.
Measuring a cryptocurrency on this basis is also a better indication of potential growth, the factor that is of prime interest to investors in digital currency. To help you get to grips with the notion of cryptocurrency market capitalization, we have listed the top five currencies based on this characteristic, also including price and the number of units in circulation.
Bitcoin
No prizes for knowing this one, unsurprisingly the ubiquitous cryptocurrency is number one for market cap, towering above the rest at $191,110,402,410.
This capitalization is achieved with 16,833,175 units of Bitcoin in circulation, currently valued at $11,353 each. Bitcoin’s price has plummeted since the end of 2017, when it came close to breaking through the $20,000 barrier.
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Its descent has been added to and accelerated by a hardening attitude towards its volatility from governments and large organisations, with the threat of tightening regulation also looming large.
Ethereum
Holding firm in second place and making progress, Ethereum commands a market capitalization of $116,699,567,889 with 97,284,500 units in circulation. Each unit of the currency is currently worth $1,199.
Ethereum may be set to benefit as Bitcoin’s reputation continues to tarnish, with the currency gaining a higher rating than Bitcoin and Ripple recently.
A body blow came Bitcoin’s way recently when the payments processor, Stripe, dropped its support for Bitcoin based on its volatility, while stating it is still positive about other cryptocurrencies.
Ripple
A major competitive player, Ripple, boasts a market cap of $51,962,361,818 with a circulating supply of 38,739,142,811 units. In stark contrast to the other top spot holders, Ripple is valued at $1.34 per unit of the cryptocurrency.
The price of Ripple has also been fluctuating of late, having recently been riding high with a valuation of £3.61 per unit earlier this month, before slipping back down to $1.04. The price has since rallied again to around $1.30.
Further good trajectory could be just around the corner for Ripple as it announces its arrival as a listing on the Middle East and North Africa exchange, BitOasis, joining its main competitors, Bitcoin and Ethereum.
Bitcoin Cash
Bitcoin Cash has managed to retain a top spot not far behind its namesake currency that it was born from, holding a market cap of $28,618,401,717. There are currently 16,938,175 units of the currency in circulation, just slightly more than Bitcoin itself.
The cryptocurrency is valued at $1,689 per unit, having taken a hit recently that pushed its value back down to a low point of just $1,343. Known for forays in small range trading days before erratic outcomes, the currency shares its volatile traits with the original Bitcoin.
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In fact, the very existence of Bitcoin Cash is symbolic of the volatility of cryptocurrencies, having been created by a hard fork in the blockchain behind bitcoin, striking fear into investors at the time. The fork was driven by a bitcoin scalability debate.
Cardano
The cryptocurrency market capitalization of this currency is $16,105,922,145 with 25,927,070,538 units of currency currently in circulation. The price of Cardano per unit is $0.621201.
Lately this cryptocurrency has experienced growth based on South Korean popularity, with some commentators considering whether the cryptocurrency could proveto be a disruptor in the space.
Cardano has been operational since 2015 as a platform and it is associated with the Ethereum ecosystem. Core focusses for this cryptocurrency are scalability and accessibility, driven by a vastly different technology, despite its association with Ethereum.
