What is the Overall Cryptocurrency Market Cap? | The Motley Fool (2024)

The overall cryptocurrency market cap is the combined value of all the cryptocurrencies on the market. Since cryptocurrencies tend to be volatile, the market cap is also highly volatile and often goes through significant changes. To see how it works, this guide will cover cryptocurrency market caps and what they can tell investors.

What is the Overall Cryptocurrency Market Cap? | The Motley Fool (1)

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What is it?

What is a cryptocurrency market cap?

A cryptocurrency market cap, short for market capitalization, is that cryptocurrency's total value. It's calculated by multiplying the current price of the cryptocurrency by the circulating supply, meaning the number of coins currently available.

For example, let's say that a cryptocurrency has a price of $100 and a circulating supply of one million coins. That would mean its market cap is $100 million. Since market caps are based on cryptocurrency prices, they're constantly changing.

What does it tell investors?

What does the crypto market cap tell investors?

The overall crypto market cap gives investors an idea of the current market trend. A rising market cap indicates a bull market, where people generally feel positively about crypto and more investors are buying in or bolstering their positions. A falling market cap indicates a bear market, where investors are more likely to stand pat or sell off crypto.

Market caps for specific cryptocurrencies are also useful tools that can help investors gauge the size and stability of those projects. If you want to compare multiple cryptocurrencies, their market caps and not their prices will show you their value. As a general rule, cryptocurrencies with larger market caps tend to be more stable (although that's “more stable” by crypto standards since they're still far from what anyone would consider a stable or low-risk investment).

What is the overall cryptocurrency market cap?

The overall cryptocurrency market cap has ranged from less than $200 billion to more than $3 trillion since 2020. Due to the volatility of cryptocurrency, the overall market cap can fluctuate quite a bit, even from day to day. There have been times when the crypto market lost more than $300 billion in a single day, as well as periods when the market cap doubled in a matter of weeks.

Top 5 cryptocurrencies by market cap

Top 5 cryptocurrencies by market cap

Here are the top five cryptocurrencies by market cap:

1. Bitcoin

Created by an anonymous founder and launched in 2009, Bitcoin (BTC -2.44%) was the first cryptocurrency. It introduced the idea of a decentralized digital currency that recorded transactions on a blockchain (a public ledger).

While Bitcoin was designed as an electronic payment system, many newer cryptocurrencies offer faster and cheaper transactions. It's now primarily seen as an investment, and it's often referred to as a digital form of gold.

New coins are minted through the Bitcoin mining process, which is also how Bitcoin validates transactions. There's a maximum supply of 21 million BTC. After that limit is reached, no new Bitcoin can be mined.

2. Ethereum

Ethereum (ETH -1.3%) is a blockchain platform that started development in 2013 and launched in 2015. It's notable for being the first blockchain with smart contract functionality. Smart contracts are self-executing programs that run on a blockchain and self-execute when specific conditions are met.

The capability of running smart contracts makes Ethereum a blockchain platform that developers can build on. It's used to create decentralized apps (dApps), which are essentially apps that run on a blockchain. These dApps can be used for more ambitious projects such as decentralized finance (DeFi) platforms that serve as an alternative to traditional financial institutions.

3. Tether

Tether (USDT -0.01%) is a stablecoin, a type of cryptocurrency that's pegged to another asset. In Tether's case, that asset is the U.S. dollar, meaning it aims to maintain a value of $1 for 1 USDT. While that's normally the case, there have been times when Tether has been worth less than or more than $1 due to market conditions.

Tether is controversial since it has faced scrutiny about its reserves and legal issues. Despite its reputation, it's the largest stablecoin and the cryptocurrency with the highest trading volume.

4. USD Coin

USD Coin (USDC -0.0%) is a stablecoin pegged to the U.S. dollar, so it serves the same purpose as Tether. It has been cutting into Tether's lead in the stablecoin space, and it has a key advantage in that it has established a better reputation for trustworthiness.

Unlike Tether, USD Coin has monthly attestations verifying its reserves issued by Grant Thornton, LLP, a top accounting firm. It's also subject to far more regulatory oversight because it's regulated as a stored value instrument.

5. BNB

BNB (BNB -3.65%) is the official cryptocurrency of the Binance exchange, one of the top global crypto exchanges. It's considered a utility token and serves a variety of roles within the Binance ecosystem.

For example, Binance clients get trading fee discounts for paying in BNB. BNB is also used to pay transaction fees on the BNB Chain, which is Binance's blockchain platform.

If you're investing in cryptocurrency stocks or individual coins, it's worth keeping an eye on market caps. Both the overall market cap and the market caps for different cryptocurrencies are useful metrics that can help your investing decisions.

Related investing topics

Investing in CryptocurrencyThese technologies serve as the gateway between the digital blockchain and human society.
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7 Blockchain Stocks to Invest InThis form of ledger technology is what's behind cryptocurrencies and other tech trends.
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Lyle Daly has positions in Binance Coin, Bitcoin, Ethereum, Tether, and USD Coin. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

What is the Overall Cryptocurrency Market Cap? | The Motley Fool (2024)


What is the market cap of the entire crypto industry? ›

Cryptocurrency Prices Today By Market Cap

The global cryptocurrency market cap today is $2.33 Trillion, a -4.99% change in the last 24 hours.

What cryptocurrency does the Motley Fool recommend? ›

Like it or not, the economy and the Fed are still the biggest drivers of crypto long term. Travis Hoium has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum.

What is fully diluted market cap in crypto? ›

A fully diluted market cap, on the other hand, is the total value of a particular crypto asset, calculated under the assumption that all of the project's tokens have already been distributed. It's determined by multiplying the current price of an asset by its max supply.

What was the market cap of Bitcoin at its all time high? ›

But in market value terms the token already touched a record. The market capitalization of Bitcoin reached $1.35 trillion, scaling the peak of $1.28 trillion from November 2021, CoinGecko data show. That was the month the token jumped to $68,991.85 at the apogee of its pandemic-era bull run.

What is the market size of cryptocurrency in the world? ›

Global Crypto Currency Market size was valued at USD 4.57 billion in 2022 and is poised to grow from USD 5.14 billion in 2023 to USD 13.19 billion by 2031, growing at a CAGR of 12.5% in the forecast period (2024- 2031).

What is the overall crypto market volume? ›

The total crypto market volume over the last 24 hours is $71.27B, which makes a 33.01% decrease. The total volume in DeFi is currently $5.99B, 8.41% of the total crypto market 24-hour volume. The volume of all stable coins is now $67.09B, which is 94.13% of the total crypto market 24-hour volume.

Which coin will reach $1 in 2024? ›

Exploring the potential cryptocurrencies like Pikamoon, Dogecoin, Book of Meme, Rosewifhat, and Zilliqa as contenders to hit the $1 milestone. Key factors like utility, viral potential, and clear roadmaps suggest their potential amidst market sentiment and unique tokenomics.

What is the most promising crypto under a penny? ›

Penny cryptos comparison chart
TickerLaunched in
Terra ClassicLUNC2019
Baby Doge CoinBABYDOGE2021
13 more rows
Apr 3, 2024

Which crypto will explode in 2024? ›

Here are the next cryptocurrencies that could explode in May 2024: Solana – A highly scalable smart contracts platform. Avalanche – A highly scalable alternative to Ethereum. Dogecoin – The original meme coin.

Does market cap matter in crypto? ›

Why is market cap important? Price is just one way to measure a cryptocurrency's value. Investors use market cap to tell a more complete story and compare value across cryptocurrencies. As a key statistic, it can indicate the growth potential of a cryptocurrency and whether it is safe to buy, compared to others.

Should you look at market cap or fully diluted market cap? ›

However, a fully diluted value market cap might be an useful metric for long-term investors, as it gives a better insight to whether a project's value is reasonable. An extremely high fully diluted market cap means that there will be a lot more tokens that can come into circulation.

What's the difference between FDV and market cap? ›

FDV is a very simple concept. It is based slightly on the idea of Market Cap, which refers to the total value of all cryptocurrencies on the market at a given point in time. However, the Fully Diluted Market Cap looks at the future rather than the assets currently available on the market.

What is the total market cap of cryptocurrency? ›

Crypto market charts

See the total crypto market cap on one chart — today it's 2.269T, which is 0.39% higher than yesterday. Altcoins market cap is 272.474B as of today — the chart will help you assess markets without the influence of Bitcoin and Ethereum.

Has Bitcoin surpassed silver? ›

"The market capitalization of BTC has now reached $1.414 trillion, exceeding that of silver, which stands at $1.38 trillion. This positive momentum is attributed to the increasing interest in Bitcoin spot ETFs and the impending Bitcoin halving event," said Edul Patel, CEO of Mudrex.

Is Bitcoin more valuable than silver? ›

Bitcoin continues to rise in the ranks of top assets by market cap, pushing past silver to become the world's eighth most valuable property.

What is the total crypto market cap in Altcoin? ›

Crypto market charts

See the total crypto market cap on one chart — today it's 2.138T, which is 0.42% higher than yesterday. Altcoins market cap is 257.292B as of today — the chart will help you assess markets without the influence of Bitcoin and Ethereum.

What is the total market cap of the world? ›

Size Indicator: The total market cap is $109 trillion in our global market scenario. We're adding up the market cap of all publicly traded companies across different countries.

What is the market cap of the DeFi industry? ›

The Decentralized Finance (DeFi) market cap today is $85.66B, which reflects a -0.21% daily change.

What is market cap and volume in crypto? ›

Market cap is the value of the asset based on its circulating supply and market price. Trading volume, on the other hand, indicates the interest investors have in buying or selling the asset.


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