The gurus call cryptocurrency a censorship-resistant investment with long-term and reliable value. The value and supply of cryptocurrency are not controlled by an entity, as is the case with fiat money. Cryptocurrencies have a market cap regulated by robust mathematical algorithms, providing higher stability against economic tides and recessions.
What Determines a Cryptocurrency’s Market Cap?
Market cap is the measure of a currency’s acceptance and dominance. Calculating the crypto market cap involves multiplying the total coins mined by the price of each coin within a specific timeframe. It’s simply a way of gauging a cryptocurrency’s overall stability and market longevity. Big-cap cryptocurrencies are less volatile and offer a more conservative and safer investment for long-term investors. So, which cryptocurrencies dominate the industry in terms of market capitalization? Let’s find out.
Bitcoin is currently the most traded and popular cryptocurrency. It’s the oldest digital currency and fundamentally the most potent driving force in the crypto industry. Its price as of 19th August 2022 is $23,146, while the market is capped at $433 billion. Bitcoin was officially released in 2009 during the Great Recession in America, which lasted from 2007 to 2009. The developer’s anonymous identity, Satoshi Nakamoto, introduced Bitcoin as a peer-to-peer cash system to replace fiat money.
The launching of Ethereum (ETH) followed six years after the official Bitcoin launch date. Launched in 2015, Ethereum’s original price was $0.31 per coin. It has since accumulated lots of value, with its current price per coin being $1,843. As of 19th August 2022, the market capitalization of Ethereum stands at $225.843 billion. The Ethereum cryptosystem supports the creation and maintenance of secure digital ledgers for traders and investors.
Tether (USDT) is a stablecoin co-developed by Reeve Collins, Brock Pierce, and Craig Sellars in 2014. The stablecoin’s value ties to the US dollar, so its worth is etched at $1.00. As for market capitalization as of 19th August 2022, that stands at $67 billion. Tether is often utilized as a medium when traders are moving tenders in between cryptocurrencies. Instead of using dollars as a medium to move the tenders back, they often use tether coins because it is cheaper and less complicated.
USD Coin (USDC)
USD Coin (USDC) is a digitally-powered stable coin fully backed by the US dollar. It’s the brainchild of the Circle, made up of members from Bitmain and Coinbase. The developers claim that the USD coin has the total backing of fully reserved assets legally held in accounts regulated by US institutions. As it’s pegged to the US dollar, its price remains at $1, but its market cap keeps increasing. The market cap currently stands at $53 billion.
Binance Coin (BNB)
Binance coin is a cryptocurrency token provided by the well-known Binance crypto exchange. The coin’s original purpose was to offer a tokenized way for active traders to pay trades at discounted rates. However, it later turned into a crypto coin usable for paying for services and goods.
Its price is $305.25, while the market cap stands at $49 billion. Recently, the Binance crypto exchange founders said they would block trading and deposits by account owners from certain jurisdictions. If you fall among the users blocked by Binance due to your jurisdiction, learn more about residential proxies and IP rotation and how they can help you access your Binance account.
Cardano is a publicly traded blockchain platform facilitating peer-to-peer transactions through its cryptocurrency ADA. Charles Hoskinson, an Ethereum co-founder, developed Cardano and officially released it in 2015. Surprisingly, Cardano runs on smart contracts and supports identity management while serving as a crypto coin.
Cardano has a price of $0.474161 and a market cap of $21 billion. Third-generation blockchain competes with first- and second-generation systems such as Bitcoin and Ethereum. The Cardano blockchain is, without a doubt, a more efficient, scalable, and secure option.
The crypto industry is growing at a fast pace, with cryptocurrencies that come up every other week dominating most crypto exchanges and trading platforms. More people are shying away from buying the highly-priced coins in fear of losing money if the price drops unexpectedly. For traders and investors, these are the cryptocurrencies with the highest market caps.