Why cryptocurrency market cap is important
The market capitalization of a cryptocurrency project is an important (and often misunderstood) measure of the project’s growth potential and market position (relative to other cryptocurrency projects). understanding Cryptocurrency market capitalization It can help you become a better, more profitable investor.
What is market capitalization?
Market capitalization is calculated by multiplying the current market price of a single coin/token by the circulating supply of the coin/token in the market.
How does market capitalization help assess growth potential?
If the market capitalization of a cryptocurrency project is $1 million, the market capitalization of the project must double to realize 2x the price of the coin/token.
In the Bitcoin example, for the price of Bitcoin to exceed $100,000 (effectively doubling its current price), Bitcoin’s market capitalization would also have to double, from its current $1 trillion to $2 trillion. Current market capitalization of the cryptocurrency market!
Compared to low market capitalization projects, low market capitalization projects have the advantage of being able to increase their market capitalization much more easily and resulting in significant price increases, which is why they are often the preferred choice for many cryptocurrency investors.
What is the market capitalization level of a cryptocurrency?
Since the cryptocurrency market is much smaller than the traditional stock market, we slightly adjusted the market capitalization level to reflect this. However, in general, the market capitalization levels of cryptocurrencies are as follows:
Mega >200 billion dollars
Mega market cap level is the highest market cap level available in the cryptocurrency market. More than $200 billion worth of cryptocurrencies are included in this level. Currently only bitcoin and Ethereum It falls into this category:itLarge $10B – $200B
The second largest category includes cryptocurrencies that trade in the $10 billion to $200 billion range. These cryptocurrencies typically include the top 20 cryptocurrencies by market capitalization, but vary depending on the current market cycle (bullish/bearish).
Projects that correspond to mega and large in size The market capitalization level is generally ‘âBlue-Chipâ cryptocurrency project This is because these cryptocurrencies are generally considered the most popular and stable (relatively) of all cryptocurrency investments.
Midmarket $1 billion – $10 billion
Anytime around 50-60 projects This falls into the mid-market market capitalization range, which includes projects with market capitalizations between $1 billion and $10 billion.
These cryptocurrencies are considered to be much more volatile than large and large capitalizations and offer investors as well as opportunities for high-growth projects.
Small market $100 million – $1 billion
Anytime around 150-200 cryptocurrency projects This is at a small market capitalization level. Within small market caps, we start looking for cryptocurrencies with large growth potential and excellent return on investment potential. This category offers higher growth potential, but also involves high volatility and risk.
There are even smaller capitalization levels…
Micro Market $10M – $100M
It’s everywhere in between. 600 and 900 cryptocurrency projects This is suitable for the Micro-Market level and the price of these projects can range from hundreds of dollars to less than a cent.
Within this category we find the largest proportion of what are commonly referred to as âpenny cryptocurrenciesâ. Micro markets include projects with market capitalizations between $10 million and $100 million. This is a cryptocurrency that often trades for less than a penny. Many of these coins have the potential for profits of huge proportions due to their low valuations, but they are also highly volatile and vulnerable to pump and dump schemes.
Nano Market $1M – $10M
We consider the nano market to have a market capitalization between $1 million and $10 million. there are more 1,000 cryptocurrency projects This makes sense for this market cap level, and within this market cap level, some of the world’s best performing cryptocurrencies have entered the market for the first time. It is also the territory of shitcoins and where many cryptocurrency projects end up dying.
Market capitalization as an indicator.
Using market capitalization as an indicator can help determine a cryptocurrency project’s relative standing (compared to other cryptocurrency projects) and provide insight into the project’s realistic growth potential.
Using market capitalization as an indicator is also a way to diversify your investment portfolio by understanding the risks and growth potential associated with investing in large caps (more stable, lower growth potential) versus small caps (higher risk, higher growth potential).
Join us – as we build up.
Bitcoin price still exceeds $50,000. While this may sound like a lot of money for a single Bitcoin, we believe this is just the beginning of what will be one of the biggest growth opportunities the cryptocurrency space has seen in at least the last four years.
If you havenât yet started diversifying your portfolio with cryptocurrencies, itâs not too late. Now is a great time to enter the market while prices are still ârelativelyâ low.
If you want to know what we’re buying, please join us through our monthly shares. Altcoin Recommendation Looking forward to the upcoming Bull Run – Become a member to access.
Richard.
Top 100 Popular Altcoins
Continuing the previous week’s trend – there are a lot of green products on the market this week.
Today’s Crypto Fear and Greed Index
today’s Cryptocurrency Fear and Greed Index = avarice â> Increased to 74 (from 72 last week).
Bitcoin and Ethereum price changes
bitcoin increase 0.63% Here are the prices it is currently trading at last week: $51,937. Over the past 90 days, Bitcoin has increased by: 40.7%.
Ethereum increase 10.3% Here are the prices it is currently trading at last week: $3,110. Over the past 90 days, Ethereum has increased by: 56.2%.
Global cryptocurrency market capitalization increased to $2T (From $1.96T last week).
Top 100 Gainers – Last 7 Days
The biggest gainers over the past 7 days (in the top 100) are:
JasmyCoin (JASMY) +151.9% – 98th
JASMY Coin This is a cryptocurrency developed by Jasmy Corporation with the goal of restoring and protecting personal data sovereignty. It leverages IoT and blockchain technologies to give users complete control over their personal data and promote trustless data exchange between IoT devices and distributed protocols. JASMY, an ERC-20 token, plays an important role in enabling transactions and network services in the Jasmy ecosystem. Jasmy focuses on edge computing and decentralized data management through IPFS, emphasizing security and user ownership of data.
SingularityNET (AGIX) +69.7% – 79th
SingularityNET (AGIX) A blockchain-based platform designed to create, share, and monetize artificial intelligence (AI) services at scale. We aim to create a decentralized marketplace for AI services so that anyone can access and deploy AI technology. SingularityNET allows developers to provide AI services to the users and organizations that need them, especially enabling AI to be used in a variety of fields such as healthcare, finance, and transportation. The AGIX token serves as a platform medium of exchange used for transactions and incentives within the SingularityNET ecosystem.
World Coin (WLD) +141.3% – 93rd
World Coin (WLD) It is a unique cryptocurrency initiative that aims to build a global identity and financial network. The project introduces a new concept called “World ID”, a privacy-preserving global identity network to prove that you are an individual online while maintaining your privacy. This is facilitated through an innovative biometric authentication system that uses a device called âOrbâ to scan an individualâs eyeballs to authenticate their uniqueness and humanity.ââââââ
It was co-founded by famous people such as: Sam Altman ~ Of Open AI, Worldcoin has received significant support, including raising over $250 million from high-profile investors. The project’s mission is to widely distribute the WLD token, potentially making it the most distributed digital currency. The WLD token itself is designed to have utility and governance properties, allowing users to participate in the future direction of the protocol.âââ.
However, the project has not been without controversy, especially regarding privacy issues related to biometric data collection practices. Regulators in Europe have questioned the legality and compliance with data protection laws of these practices.
Uniswap (UNI) +41.8% – 16th place
Uniswap (UNI) It is a decentralized financial protocol used to exchange cryptocurrencies. UNI is the governance token of the Uniswap protocol, allowing holders to vote on changes to the protocol. Built on the Ethereum blockchain, Uniswap uses smart contracts to enable automated trading between cryptocurrency tokens on the Ethereum blockchain.
Biggest microcap gain in the last 30 days
We review and analyze small and micro market cap cryptocurrencies every week to find out: low cap jewelry. This provides the best performance (quality). microcap project In the past 30 days:
Highest performing quality micro cap (last 30 days)
Monthly Altcoin Selection
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Until next report,
Richard.