KEYTAKEAWAYS
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Market Capitalization Basics: Market cap represents the total market value of a company's shares or cryptocurrency and is calculated by multiplying the price by the circulating supply.
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Significance of Market Cap: Investors monitor market cap to gauge a company's size, compare with peers, and strategize investments, important for assessing potential growth and market stability.
- Top 10 Cryptocurrencies by Market Cap (2024): Bitcoin leads the market, followed by Ethereum, Tether, Solana, and BNB in the top five, with Dogecoin, XRP, USDC, Cardano, and TRON completing the ranking
CONTENT
Explore market cap: a key financial metric reflecting the total market value of a company’s shares or crypto assets. CoinRank also discusses the top 10 cryptos by market cap in the article.
WHAT IS MARKET CAP?
You may often read the word “market capitalization” (often abbreviated as “market cap”) in the financial news. It denotes the market value of a financial product or asset and essentially represents the total cost required to purchase that product or asset in the market.
Market cap is most commonly associated with stock markets, where it is used to estimate the valuation of a company. Commonly seen in news headlines, statements like “Google’s market cap has exceeded $2 trillion” or “Tesla’s market cap has bounced back to $584.4 billion” revolve around this concept.
The same principle applies to cryptos, which are becoming a frequent topic of discussion as they gain more mainstream acceptance. This article will explore the importance of market cap, methods for its calculation, and the factors that affect it, concluding with a list of the top 10 cryptos by market cap for reference.
HOW DO YOU CALCULATE MARKET CAP?
Typically, a company’s market cap is calculated by multiplying the total value of its publicly traded shares by the current market price of the share. In the case of cryptos, the calculation correlates the price per currency unit with the total number of circulating digital tokens.
WHAT AFFECTS MARKET CAP?
Based on the calculation formula in the section above, the main factors influencing market cap are the price and circulation of the product (stock). For cryptos, if there is bullish market news or a surge in demand that drives the price of crypto up, its market cap will increase, provided the circulation remains unchanged.
Conversely, if the total circulating supply of a crypto increases while the price remains stable, its market cap will also rise.
WHY IS MARKET CAP IMPORTANT?
One might wonder why investors consistently monitor market caps. The market cap serves as a key indicator for investors to gauge the scale of an investment target within the market and to compare it with competitors in the same industry to strategize their investments accordingly.
For example, in the U.S. stock market, companies are categorized by size: “large-cap” stocks are valued over $10 billion, “mid-cap” stocks between $2 billion and $10 billion, and “small-cap” stocks between $300 million and $2 billion. Investors use these classifications to guide their investment allocations.
Similarly, in the crypto market, investors can assess crypto by market cap to find out the investment potential and market sentiment towards it, which can also indicate potential future trends.
CRYPTO BY MARKET CAP 2024 RANKING – TOP 10 CRYPTOS
Here, we list the top 10 cryptos in 2024 so readers can have a better understanding of the concept of crypto by market cap:
1. Bitcoin (BTC):
As the pioneering crypto, Bitcoin has always been a crucial market benchmark. Its price has steadily increased with growing interest in the crypto market, reaching an all-time high of $73,000 in the first quarter of 2024, before surging even higher to nearly $90,000 in November following the U.S. presidential election.
The cryptocurrency gained over 30% since election day, as markets responded positively to President-elect Trump’s anticipated crypto-friendly stance, further cementing Bitcoin’s position as the leading crypto by market cap.
The total supply of Bitcoin is capped at 21 million coins, which means that once all coins are mined, the circulating supply will reach its limit, potentially driving the price even higher.
2. Ethereum (ETH):
The price of ETH has risen alongside the diverse applications of Ethereum. ETH peaked at over $4,600 in November 2021 before declining, and while it reached $4,000 in 2024 Q1, it has since shown mixed performance, fluctuating between $3,000 and $3,500, and notably underperforming compared to Bitcoin and other smart contract platforms.
ETH continues to maintain its position as the second highest-valued crypto by market cap, though at a considerable distance from its all-time high. Unlike BTC, ETH does not have a fixed supply, which adds a variable in considering its long-term market cap.
3. Tether (USDT):
As a stablecoin, Tether is pegged to the US dollar and is less prone to volatile price fluctuations compared to other cryptos, unless an unexpected event such as LUNA crash happens. The primary factor affecting Tether’s market cap is its circulating supply, dependent on market demand and supply dynamics.
4. Solana (SOL):
Often dubbed the ‘Ethereum killer,’ Solana has risen in the ranks by market cap due to its versatile applications (like smart contracts and DeFi) and its resolution of Ethereum’s issues with congestion and efficiency. SOL reached a high of $250 in November 2021 and has climbed back to near $200 in 2024 after the falling price.
More notably, SOL’s recent surge following the U.S. presidential election has propelled it past BNB to become the fourth-largest crypto by market cap, as markets anticipate a more favorable regulatory environment under President-elect Trump.
The ‘memecoin craze’ of early 2024 combined with Solana’s popularity among institutional investors and its reputation for low-cost DeFi trading have all contributed to this remarkable ascent.
5. BNB (BNB):
Native to the Binance Chain, BNB has gained popularity and attention due to its various applications, growing nearly 600 times in price since its launch. BNB ranks as the fifth largest crypto by market cap. Like BTC, BNB has a fixed total supply set at 200 million coins, and its limited future supply will be a significant factor in its price and market cap trajectory.
6. Dogecoin (DOGE)
Originally created as a memecoin, Dogecoin has emerged as one of the most surprising success stories in the 2024 crypto market. The cryptocurrency has shown remarkable growth, surging 145% since the U.S. presidential election, significantly outpacing both Bitcoin and Ethereum’s gains during the same period.
While still trading below its all-time high of $0.73 from 2021, DOGE’s recent performance has been largely attributed to Elon Musk’s continued endorsements and his public support for President-elect Trump, demonstrating how influential figures can impact crypto valuations.
7. XRP (XRP)
XRP, developed by Ripple Labs, has maintained its position as a top 10 crypto through both challenges and triumphs. Initially designed to revolutionize international money transfers, XRP gained significant momentum after winning key legal battles against the SEC in 2023.
The cryptocurrency, which once reached an all-time high of $3.84, has seen renewed market interest following the U.S. presidential election, as investors anticipate a more crypto-friendly regulatory environment.
Despite its volatile history, XRP continues to be a significant player, with its value driven by both its practical utility in cross-border payments and improving regulatory outlook.
8. USDC (USDC)
As one of the biggest stablecoins, USD Coin (USDC) has established itself as a trusted digital asset pegged to the US dollar at a 1:1 ratio. Circle’s USDC has gained significant traction in the crypto market, particularly in U.S.-focused exchanges and DeFi applications, with its supply growing by $1.6 billion to reach nearly $37 billion following the U.S. presidential election.
The stablecoin’s commitment to regular audits and transparent reserve backing has made it a preferred choice for institutional investors and DeFi users, solidifying its position among the top crypto by market cap.
9. Cardano (ADA)
Known for its research-driven approach, Cardano (ADA) has established itself as a leading smart contract platform. Despite facing regulatory challenges in 2023, ADA demonstrated resilience with a 50% growth rate in November 2024.
The platform’s focus on improving network capacity, transaction speed, and cost efficiency continues to attract long-term investors to this innovative blockchain.
10. TRON (TRX)
TRON has proven itself as a high-performing blockchain platform with consistent growth throughout 2024. After reaching its 200 millionth account in late 2023, TRON’s market cap grew by 24% in Q3 2024 to $13.5 billion.
The platform achieved a record $10 billion in Total Value Locked (TVL) in March 2024, further strengthened by its strategic partnership with Chainlink as its official oracle provider. TRON’s active user base and deflationary token economics continue to drive its expansion.
More articles about the crypto market:
- Crypto Bull Market 2024: What It is and When to Buy
- 2024 Crypto Market Predictions Backed by Technical Analysis
- 2024 Top 5 Crypto Market News Websites
- A Review of Crypto Market Trends in the First Half of 2024
FAQS
- What is market cap?
Market cap denotes the market value of a financial product or asset and essentially represents the total cost required to purchase that product or asset in the market.
- How do you calculate market cap?
Normally, a company’s market cap is calculated by multiplying the total value of its publicly traded shares by the current market price of the share. For cryptos, the calculation correlates the price per currency unit with the total number of circulating tokens.
- What affects the market cap?
The main factors influencing the market cap are the price and circulation of the product (i.e. crypto, stock).
- Why is market cap important?
The market cap serves as a key indicator for investors to gauge the scale of an investment target within the market and to compare it with competitors in the same industry to strategize their investments accordingly.
- What are the top 5 cryptos by market cap?
To date (November 2024), the top 5 cryptos by market cap are BTC, ETC, USDT, SOL, and BNB (from high to low).
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