For decades market capitalization, has been used as the standard metric for measuring traditional securities. The market cap for a particular company is derived by multiplying the stocks price by the outstanding amount of shares held by the companies shareholders. Similarly, the market capitalization of a coin is derived by multiplying the price of a coin by the number of circulating coin. market caps offer a standard metric for measuring how valuable a cryptocurrency is. At the time of his writing, only 12 coins have exceeded the $1 billion in market caps. Below are some of the largest cryptocurrencies by virtue of their market cap.
To date, Bitcoin remains the largest cryptocurrency by market cap boasting of a phenomenal $11 billion. This translates to roughly 55% of the total cryptocurrency market capitalization which is pegged at around 191 billion. Statistics from the CoinMarketCap indicate that there are over 17.28 million Bitcoins in circulation worldwide. Despite a massive slump from a high of $20,00 in mid-2017 to the current price of $6437 currently analyst predict a strong growth for Bitcoin. Since more people are warming up to cryptocurrencies and being the de-facto face of digital currencies it is expected its demand will continue to increase albeit marginally. Surprisingly, Bitcoins market cap is almost comparable to the market cap for big conglomerates such as apple($800 billion), Facebook ($500 billion), and JP Morgan($300 billion). Although Bitcoins ranks lower than the three mentioned companies this is a clear reflection on the potential held by the coin.
A distant second on the list is Ethereum. The blockchain that has been extensively used in creating a digital token and popularized the concept of initial coin offering(ICO). Ethereum has a market cap of $21.62 billion. Ethereum tokens are priced at about $211.83with over 102 million tokens in circulation today. Numerous startups have used Ethereum token to finance their ICOs. While this has generated millions of dollars in capital their volatility has seen the sum shrink quite significantly.
A case in point is that of Envion that raised over $100 million of ether in January of 2018 which had since shrunk to less than $7 million in August 2018.
Closely behind Ethereum is Ripple’s XRP coin with a market cap of $14 billion. The cost of an XRP coin is one of the lowest among most cryptocurrencies. According to CoinMarketCap one XRP is currently selling at 37 cents. With unusual low prices XRP as the largest supply of tokens with around 39.81 billion tokens in circulation.
Fourth on the list is Bitcoin cash which was launched as a spin-off of bitcoin with a market cap of $7.5 billion dollars. The price of a Bitcoin cash is currently at $ 436. Bitcoin cash has over 17 million coins in circulation today. Launched by Bitcoin developers worried about the scalability of the bitcoin, this coin remains attractive to buyers who are interested in the Bitcoin but are worried about its sustainability or scared by its high price.
To round off the top five cryptocurrencies by market cap is the EOS with a cap of $4.8 billion dollars. The price of one EOS token is currently valued at $5.30, with a total of over 906 million coins in circulation all over the world.
The figure below shows the top 10 cryptocurrencies by market capitalization listed against the current prices, volume traded in 24 hrs. Total coin in circulation, and variation percentage.
*All facts, figures, and tables in this article are derived from the website https://coinmarketcap.com.