What Is Cryptocurrency Market Capitalization?
Cryptocurrency market capitalization (or "market cap") represents the total value of all mined or circulating coins/tokens of a specific cryptocurrency. It’s a key metric for ranking cryptocurrencies—the higher the market cap, the greater its ranking and market share.
Market cap is calculated by multiplying a coin's circulating supply by its current price. For example:
- Ethereum’s market cap = Circulating ETH × Current ETH price
How to Compare Cryptocurrency Market Caps?
Market caps are categorized into three tiers:
- Large-cap: >$10 billion (e.g., Bitcoin, Ethereum)
- Mid-cap: $1–10 billion
- Small-cap: <$1 billion
Why Market Cap Matters:
- Stability: Large-cap assets are typically less volatile.
- Ecosystem health: Projects with high market caps often have active developer communities and proven protocols.
- Comparative analysis: Helps investors gauge relative size but should be paired with metrics like trading volume, liquidity, and fully diluted valuation (FDV).
👉 Discover top-cap cryptocurrencies
Why Do Exchange Rates Vary Across Platforms?
Cryptocurrency prices differ between exchanges due to:
- Liquidity disparities
- Trading pairs availability (e.g., BTC/USDT vs. BTC/ETH)
- Regional demand/supply
- Derivatives/leverage markets
CoinGecko calculates prices using a volume-weighted average across global exchanges for accuracy.
Where to Track Cryptocurrency Prices?
CoinGecko provides real-time data for 10,000+ coins across 50+ fiat currencies, including:
- BTC/CNY, ETH/CNY, USDT/CNY pairs
- 24-hour trading volume, market cap, price charts, historical data
- Portfolio tracking tools
What Does "24-Hour Trading Volume" Mean?
It reflects the total value of a cryptocurrency traded in spot markets over the past day. Example:
- $15B ETH volume = $15B worth of Ethereum changed hands in 24 hours.
FAQ
1. How often is market cap updated?
Market cap updates in real-time as prices fluctuate.
2. Is high market cap always better?
Not necessarily—small-cap coins may offer higher growth potential (with higher risk).
3. Can market cap be manipulated?
Yes, via "wash trading" or low-float tokens. Cross-check with trading volume.
4. Why use CoinGecko over exchanges?
CoinGecko aggregates data globally, minimizing exchange-specific biases.
5. What’s the difference between circulating and total supply?
Circulating supply excludes locked or reserved tokens, affecting market cap accuracy.
6. How do I track my portfolio?
Register on CoinGecko to monitor holdings via their portfolio tool.
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