Ranking the top 10 cryptocurrencies by market capitalization

• The crypto market cap represents a crucial metric for understanding the value of a digital currency.
• There are over 26,000 cryptocurrency projects currently, with a market cap of around $1.13 at the time of writing.
• Bitcoin has the highest market cap, followed by Ethereum, the second-largest cryptocurrency.

Since Bitcoin debuted over a decade ago, many new types of cryptocurrencies have emerged, from Bitcoin and Ethereum to Dogecoin and Tether. This makes it imaginably overwhelming for investors considering delving into crypto for the first time. This article ranks the top 10 cryptocurrencies by their total market cap at the time of writing.

There are over 26,000 cryptocurrency projects currently, with a market cap of around $1.13 at the time of writing. Many buyers consider Bitcoin a store of value. Consequently, they use Bitcoin as an investment vehicle. Other digital currencies, like ETH, are more transactional. Developers can build tools, services, and communities with more transactional blockchains.

Understanding the crypto market cap

Market cap is a term that describes the total value of a company’s shares of stock. In cryptocurrency, market capitalisation plays a significant role in curating the value of different digital assets. The cap is calculated by multiplying the total number of crypto coins in circulation by the current market price of a single coin.

The crypto market cap represents a crucial metric for understanding the value of a digital currency. It provides a snapshot of the total value of all the circulating tokens or coins. As such, it gives investors an idea of the cryptocurrency’s overall worth. The market cap also helps investors compare cryptocurrencies and make informed investment decisions.

Bitcoin has the highest market cap, followed by Ethereum, the second-largest cryptocurrency. Interestingly, some cryptocurrencies have calculated a limited supply to increase their scarcity and value. Bitcoin and Litecoin represent good examples of cryptocurrencies with limited supply.

Nevertheless, the crypto market cap does not represent a perfect metric. A high market cap does not necessarily make a particular cryptocurrency a fitting investment. Similarly, a low market cap does not make a cryptocurrency undervalued. Investors must always consider other factors, including the technology backing the cryptocurrency, use cases, and the team behind the particular project.

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Bitcoin (BTC)

Market cap: $582 billion

Bitcoin (BTC) is the original cryptocurrency created in 2009 by Satoshi Nakamoto. Many have often called Bitcoin “digital gold,” which remains the cryptocurrency market leader. Since its inception, Bitcoin has experienced exponential growth, appealing to retail and institutional investors alike.

Bitcoin’s future position remains strong, inspired by its constantly growing adoption as a means of payment and strong position as a store of value. The largest cryptocurrency’s price has evolved exponentially over its lifetime, hitting the roof and dropping in significant figures. The price of a single Bitcoin was worth roughly $370 in May 2016. The cost is around $30,016 at the time of writing.

 

Ethereum (ETH)

Market cap: $191 billion

Ethereum pioneered smart contracts in the world of cryptocurrency. Its native cryptocurrency, Ether, represents a digital currency and a utility token. The Ethereum network has grown tremendously from its connection with decentralised applications (DApps), decentralized finance (DeFi), and non-fungible tokens (NFTs).

The future of the Ethereum network looks promising, considering the ongoing network upgrades and the recent shift to a proof-of-stake (PoS) consensus mechanism. Ethereum’s price has also experienced dramatic plunges and surges. Its price went from about $8 in April 2016 to around $1,617 at the time of writing.

Tether (USDT)

Market cap: $83 billion

Tether (USDT) is a stablecoin, unlike some other forms of cryptocurrency. As such, it means Tether is pegged to traditional fiat currencies, including the US dollar and the Euro. Theoretically, Tether maintains a value equal to the fiat currency it is pegged to.

Theoretically, this means Tether’s value must remain more consistent than other cryptocurrencies, and it’s selected by some shareholders who are careful of the extreme precariousness of other coins.

Binance Coin (BNB)

Market cap: $32 billion

Binance Coin is the native cryptocurrency of the Binance exchange, one of the largest cryptocurrency exchanges globally. BNB has various use cases, including trading fee discounts, staking, and Binance Smart Chain ecosystem participation. Binance has an ambitious ecosystem expansion and an extensive user base, making BNB’s future promising. The price of BNB during the token sale was $0.15 per BNB. The BNB token sale started on June 26, 2017, lasting until July 3, 2017. The ride along the way has remained highly volatile, as with other cryptocurrencies. BNB’s current price is $214.

XRP

Market cap: $27 billion

A digital skill and payment dispensation company created by the same initiators as Ripple, XRP, can be used on that system to expedite exchanges of dissimilar currency types, including authorized currencies and other key cryptocurrencies. The price of XRP was $0.004 at the commencement of 2017, and its price grasped $0.43 as of October 2023.

US Dollar coin (USDC)

Market cap: $25 billion

USD Coin (USDC) is a stable coin like Tether, meaning it is hypothetically pegged to the US dollar and aims for a 1 USD to 1 USDC ratio. USDC operates on the Ethereum blockchain and can be used to fulfil global transactions.

Solana (SOL)

Market cap: $11 billion

Established to power decentralised finance (DeFi), decentralized apps, and smart contracts, Solana runs on exclusive hybrid proof-of-stake and proof-of-history tools to process transactions promptly and securely. SOL, Solana’s native token, powers the platform

SOL started at $0.57 when it launched in 2020, and its price is now around $26.91.

Cardano (ADA)

Market cap: $8.8 billion

Although a late entrant to the crypto ecosystem, Cardano (ADA) became famous for its early embrace of proof-of-stake validation. This technique accelerates transaction processing time and decreases energy usage and environmental effects by eliminating transaction verification’s competitive, problem-solving aspect on platforms like Bitcoin.

Cardano also works like the Ethereum blockchain to empower smart contracts and dApps, which ADA, its native coin, commands. Cardano’s ADA token price was around $0.015 in 2017, now hovering around $0.25.

Dogecoin (DOGE)

Market cap: $8.5 billion

Initiated as a joke, Dogecoin was successfully launched in 2013 but quickly evolved into a prominent cryptocurrency thanks to a devoted community and artistic memes. Unlike many other cryptos, there are no limits on the number of Dogecoins created. This leaves the currency vulnerable to weakening as quantity increases. In 2017, Dogecoin’s price was $0.00016 and stands at around $0.06.

TRON (TRX)

Market cap: $8.1 billion

TRON is a blockchain designed to run smart contracts and other DeFi solicitations like Solana. TRX is the platform’s inherent cryptocurrency, which controls its proof-of-stake consensus algorithm. TRON was launched in 2017, with TRX initially valued at 0.015p per token. Currently, TRX is about $0.09

Read More: What is crypto tokenomics: An evaluation guide to crypto investors

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• Source: https://web3africa.news/2023/10/21/crypto/ranking-the-top-10-crypto-market-cap/