What is Market Cap & Top 10 Cryptocurrencies to look at ( Part 1 )
The market price of a cryptocurrency is just but one small factor to determine the success of a coin, but Market Capitalization is by far the most popular indicator of the success of a coin.
For a cryptocurrency, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
So, what is the point of ranking by market cap? What are we learning from this metric? It shows us how much risk we are dealing with when we choose to invest in a cryptocurrency.
Here are the top 10 cryptocurrencies ranked by Market Cap.
(Data current as of 1 May 2021)
#1. Bitcoin (BTC)
Market Cap : $1.09 Trillion
Bitcoin is a cryptocurrency. -It is a decentralized digital currency that is based on cryptography. As such, it can operate without the need of a central authority like a central bank or a company. It is unlike government-issued or fiat currencies such as US Dollars or Euro in which they are controlled by the country’s central bank. The decentralized nature allows it to operate on a peer-to-peer network whereby users are able to send funds to each other without going through intermediaries.
TL;DR : Store of Value
#2. Ethereum (ETH)
Market Cap : $325.9 Billion
Ethereum is a global, open-source platform for decentralized applications. In other words, the vision is to create a world computer that anyone can build applications in a decentralized manner; while all states and data are distributed and publicly accessible. Ethereum supports smart contracts in which developers can write code in order to program digital value. Examples of decentralized apps (dapps) that are built on Ethereum includes token, non-fungible tokens, decentralized finance apps, lending protocol, decentralized exchanges, and much more.
TL;DR : Platform for dApps on Ethereum Network
#3. Binance Coin (BNB)
Market Cap : $98.1 Billion
Binance Coin (BNB) is an exchange-based token created and issued by the cryptocurrency exchange Binance. Initially created on the Ethereum blockchain as an ERC-20 token in July 2017, BNB was migrated over to Binance Chain in February 2019 and became the native coin of the Binance Chain.
Binance Coin has seen massive growth in interest throughout the years. Several rounds of token burn events have appreciated BNB price and pushed it up as one of the top-10 cryptocurrencies by market capitalization. BNB can be traded in over 300 trading pairs across 120 exchanges tracked.
TL;DR : Platform for Defi dApps on Binance Smart Chain
#4. Ripple (XRP)
Market Cap : $73.4 Billion
Ripple is a privately-held fintech company that provides a global payment solution via its patented payment network called Ripple Network (also known as RippleNet). RippleNet is a payment network that is built on top of Ripple’s consensus ledger, called XRP Ledger (also known as XRPL). Ripple funded the development of the open-source XRP Ledger.
Unlike most cryptocurrencies out there that cater to peer-to-peer needs, Ripple was made to connect banks, payment providers and digital asset exchanges, enabling real-time settlement expeditions and lower transaction fees.
TL;DR : Payment and Transfer
#5. Tether (USDT)
Market Cap : $51.1 Billion
Tether is a stablecoin pegged to the US Dollar. A stablecoin is a type of cryptocurrency whose value is pegged to another fiat currency like the US Dollar or to a commodity like Gold.
Tether is the first stablecoin to be created and it is the most popular stablecoin used in the ecosystem. It has the largest stablecoins by circulation and market capitalization.