When you first begin learning about cryptocurrencies, the sheer number of available options might be daunting and perplexing. Here are the top cryptocurrency market caps by 5, or the total value of all coins presently in circulation, as compiled by Forbes, to help you better comprehend the world of cryptocurrencies. Shiba Inus and Dogecoin are not included in this list.

Bitcoin (BTC)

The market capitalization is above $846 billion.

Bitcoin (BTC) is the first cryptocurrency, having been developed in 2009 by a person using the alias Satoshi Nakamoto.

BTC operates on a blockchain, which is a distributed ledger of transactions shared among a network of thousands of computers, like the majority of other cryptocurrencies.

Bitcoin is protected from fraudsters because updates to the distributed ledger must be validated by resolving cryptographic puzzles, a procedure known as proof of work.

The cost of Bitcoin has greatly increased. In May 2016, Bitcoin was available for about $500 USD. On March 1, 2022, the price of one Bitcoin surpassed $44,000.It follows that the price growth has increased by 7,800%.

Ethereum (ETH)

More than $361 billion in market capitalisation

Ethereum is popular among programmers as a cryptocurrency and blockchain platform because of its potential uses, such as so-called smart contracts that automatically execute when certain conditions are satisfied and non-fungible tokens (NFTs). Ethereum has also grown quite fast. The price increased by more than 270% from about US$11 to over US$3,200 between April 2016 and early March 2022. 

Tether (USDT)

More than $79 billion in market capitalisation

Tether is a stablecoin, which means that it is backed by fiat currencies like the US dollar and the euro and hence theoretically preserves the same value as one of those denominations, in contrast to some other types of cryptocurrencies. Theoretically, this suggests that the value of Tether will be more steady than the value of other cryptocurrencies. Tether is typically preferred by investors who are concerned about the excessive volatility of other coins. 

Binance Coin (BNB)

More than $68 billion in market capitalisation

One of the biggest cryptocurrency exchanges in the world, Binance, accepts Binance Coin as payment for transactions and trading fees.

By merely enabling trade on the Binance exchange platform since its introduction in 2017, Binance Coin has expanded. Now, it may be utilized for trading, processing payments, or even making trip plans. Additionally, it may be sold or converted into other cryptocurrencies like Ethereum or Bitcoin. In 2017, the cost of BNB is only $0.10. The cost had climbed to nearly US$413, an increase of almost 410,000%.

The Dollar Coin of the United States (USDC)

The market capitalisation is more than $53 billion USD.

Like Tether, USD Coin (USDC) is a stablecoin that aspires to a 1 USD to 1 USDC ratio and is backed by US dollars. The Ethereum-backed USDC may be used to perform cross-border transactions.

Top Cryptocurrency Market Caps and How to Calculate? 

Prediction for MakerDao’s (MKR) price:

Now that we understand what a market cap is, it’s time to learn how to determine the market cap of cryptographic assets. The total current circulating supply of a cryptocurrency or digital asset is multiplied by the token or coin’s price to determine its market capitalization. For instance, if there are 18,000,000 Bitcoins in circulation, the price is currently $23,000. So how can you figure out the market capitalization of Bitcoin? 18,000,000 x 23,000. Consequently, Bitcoin’s market capitalization is $414,000,000,000. Here is the method for calculating the market capitalization of cryptocurrencies (the value of all crypto assets on the market). Cryptocurrency market capitalisation is determined by outstanding supply and current asset price.

You may browse websites that offer market capitalization pricing information if you don’t want to bother, though. The first one is CoinMarketCap, which offers up-to-the-minute data on the values of the top 100 cryptocurrencies for the upcoming 24 hours.

The Market Cap-Based Classification of Crypto Assets

For the purpose of categorizing cryptocurrencies on crypto exchanges, there are four types of market capitalization. You will find it simpler to compare the entire worth of one cryptocurrency to another thanks to this classification, which will help you make better investing choices.

Following are the four groups according to market capitalization:

The safest cryptocurrency investments are often large-cap ones. When the market capitalization of a cryptocurrency is more than $10 billion USD, it is called a “large-cap.”

The most popular tactic is to invest in cryptocurrencies with a high market capitalization. This is so because the long-term performance of the currencies in this group has been established. Because of its value and established degree of security, it may be considered a major actor in the cryptosphere. Large-cap coins also have a high level of liquidity. This indicates that these assets have a significant trading volume and can be found on practically all cryptocurrency exchanges. It is simple for investors to enter and exit markets with high liquidity.

Bitcoin and Ethereum are examples of the cryptocurrency kinds that fit under this heading.

How to Interpret the Bitcoin Rainbow Chart

a mid-cap

The market value of a cryptocurrency ranges from 1 billion to 10 billion US dollars. Mid-cap currency types are typically thought to have higher risk and unrealized reward potential than small-cap currency types. In general, mid-cap cryptocurrencies have a good long-term track record of performance. The medium-category currency can improve asset diversification by being included in your portfolio. But bear in mind that not all mid-cap currencies have the potential to become large-cap coins. Litecoin, Cardano, and Monero are a few examples of currencies that fit within the mid-cap group. small-capA coin or token is considered to be small-cap if its market valuation is between $100 million and $1 billion. These types of cryptocurrencies are extremely volatile and are regarded as very dangerous investments. Even if it occasionally has significant short-term growth potential, Dogecoin is an illustration of a digital cryptocurrency in this group.

Micro-cap

Micro-category cryptocurrencies are unquestionably riskier than small-cap cryptocurrencies. The majority of the time, this category consists of brand-new businesses with a market valuation of less than $50 million USD that were founded by an unidentified person or group.