Why Crypto Market Cap is Important
The market capitalization of a cryptocurrency project is an important (and often misunderstood) metric for evaluating both the growth potential and market position of the project (relative to other cryptocurrency projects). Understanding cryptocurrency market capitalization can help you to become a better and more profitable investor.
What is Market Capitalization?
Market capitalization is calculated by multiplying the current market price of a single coin/token by the circulating supply of coins/tokens in the market.
How Does Market Cap Help with Evaluating Growth Potential?
If a crypto project has a market capitalization of $1 million, the market capitalization of the project would have to double to realize a 2x in the price of the coin/token.
In the example of Bitcoin, for the price of Bitcoin to exceed $100,000, (effectively 2x the current price), the market capitalization of Bitcoin would have to also double from its current one trillion dollars to two trillion dollars, effectively becoming bigger than the entire market capitalization of the current cryptocurrency market!
When compared to lower market capitalization projects, the advantage lower capitalization projects have is that they can increase market capitalization much easily, and as a result significant price appreciation can take place, which is why they are often the preferred choice for many cryptocurrency investors.
What are the Market Capitalization Levels in Cryptocurrency?
Since the cryptocurrency market is much smaller than the traditional stock market, the market capitalization levels have been slightly adjusted to reflect this. Still, in general, the market capitalization levels in cryptocurrency, look like this:
Mega >$200 Billion
The mega-market capitalization level is the highest capitalization level available in the cryptocurrency market. Cryptocurrencies that are more than $200 billion are included in this level. Currently, only Bitcoin and Ethereum fall into this category.itLarge $10B – $200B
The second-largest classification includes those cryptocurrencies that are traded between $10 billion and $200 billion range. These cryptocurrencies typically include the top twenty cryptocurrencies (by market cap), however, it is dependent on the current market cycle (bull/bear).
Projects that fall within the Mega and Large market capitalization levels are also typically considered the ‘Blue-Chip’ Crypto Projects as these cryptocurrencies are generally considered the most popular and stable (relative) of all cryptocurrency investments.
Mid-Market $1B – $10B
At any given time there are around 50–60 projects which fall into the mid-market level of market capitalization and this includes projects with a market capitalization of between $1 billion to $10 billion.
These cryptocurrencies are considered to have a much higher degree of volatility than large and mega capitalization and offer the investor but also offer an opportunity for high-growth projects.
Small Market $100M – $1B
At any given time there are around 150–200 cryptocurrency projects which fall into the small market capitalization level. Within the small-market capitalization is where we start to find cryptocurrencies with large growth potential and potential for an excellent return on investment. Although this category offers a higher potential for growth, it also has the potential for high volatility and risk.
There are also even smaller capitalization levels…
Micro Market $10M – $100M
There are anywhere between 600 and 900 crypto projects which fit into the Micro-Market level and the prices for these projects can range anywhere from a couple of hundred dollars to fractions of a penny.
It’s within this category we find the largest proportion of what is commonly referred to as ‘penny cryptos’. The micro-market includes projects with a market capitalization of between $10 million and $100 million. These are cryptocurrencies that are often traded under one penny. While many of these coins have the potential for massive percentage gains given their low value, they are also highly volatile and susceptible to pump-and-dump schemes.
Nano Market $1M – $10M
Market Capitalization between $1 million to $10 million we consider the Nano Market. There are more than 1,000 cryptocurrency projects that fit into this market capitalization level and it’s within this market capitalization level some of the world’s best-performing cryptocurrencies first entered the market. It’s also the domain of shitcoins and where many crypto projects go to die.
Market Capitalization as a Metric.
Using market capitalization as a metric helps you know the relative position of a cryptocurrency project (when compared to other crypto projects) and can offer insight into the realistic growth potential of a project.
Using market capitalization as a metric is also a way to diversify your investment portfolios by understanding the risk and growth potential associated with large-cap (more stable, lower growth potential) versus small-cap (higher risk, higher growth potential) investments.
Join Us – As We Accumulate
The price of Bitcoin still sits above the $50k mark and while this may sound like a lot of money for a single Bitcoin, we believe this is just the beginning of what will become one of the biggest growth opportunities we have seen in the crypto space for at least the last four years.
If you haven’t already started diversifying your portfolio with crypto, it’s still not too late. Now is still an excellent time to get into the market while prices are still ‘relatively’ low.
If you want to know what we are buying, you are more than welcome to join us as we share our monthly Altcoin picks in anticipation of the upcoming bull run – Become a member to gain access.
Richard.
Top 100 Trending Altcoins
Continuation of the prior week’s trend – Lots of green in the market again this week.
Today’s Crypto Fear & Greed Index
Today’s Crypto Fear and Greed Index = Greed –> Increased to 74 (from 72 last week).
Bitcoin & Ethereum Price Movement
Bitcoin increased 0.63% in the last week, currently trading at $51,937. In the previous 90 days, Bitcoin has increased by 40.7%.
Ethereum increased 10.3% in the last week, currently trading at $3,110. In the previous 90 days, Ethereum has increased by 56.2%.
Global cryptocurrency market capitalization has increased to $2T (from $1.96T last week).
Top 100 Gainers – Last 7 Days
Over the last 7 days, the biggest gainers (within the top 100):
JasmyCoin (JASMY) +151.9% – Ranked #98
JasmyCoin (JASMY) is a cryptocurrency developed by Jasmy Corporation, aimed at restoring and protecting individual data sovereignty. It utilizes IoT and blockchain technology to allow users complete control over their personal data, facilitating trustless data exchange between IoT devices and decentralized protocols. The ERC-20 token, JASMY, plays a crucial role in the Jasmy ecosystem, enabling transactions and network services. Jasmy focuses on decentralizing data management through edge computing and IPFS, emphasizing security and user ownership of data​​.
SingularityNET (AGIX) +69.7% – Ranked #79
SingularityNET (AGIX) is a blockchain-based platform designed to facilitate the creation, sharing, and monetization of artificial intelligence (AI) services at scale. It aims to create a decentralized marketplace for AI services, allowing anyone to access and deploy AI technologies. Through SingularityNET, developers can offer their AI services to users and organizations in need, enabling the use of AI in various sectors such as healthcare, finance, and transportation, among others. The AGIX token serves as the medium of exchange on the platform, used for transactions and incentives within the SingularityNET ecosystem.
Worldcoin (WLD) +141.3% – Ranked #93
Worldcoin (WLD) is a unique cryptocurrency initiative aimed at creating a global identity and financial network. The project introduces a novel concept called “World ID,” a privacy-preserving global identity network, to provide proof of personhood online while maintaining user privacy. This is facilitated through an innovative biometric verification system using a device known as the “Orb,” which scans individuals’ eyeballs to authenticate their uniqueness and humanity​​​​​​.
Co-founded by notable figures including Sam Altman of OpenAI, Worldcoin has garnered significant backing, raising over $250 million from prestigious investors. The project’s mission is to distribute the WLD token widely, potentially making it the most distributed digital currency. The WLD token itself is designed to have utility and governance properties, allowing users to participate in the protocol’s future direction​​​​.
However, the project has not been without controversy, particularly regarding privacy concerns associated with its biometric data collection practices. Regulatory bodies in Europe have raised questions about the legality and compliance of these practices with data protection laws​​.
Uniswap (UNI) +41.8% – Ranked #16
Uniswap (UNI) is a decentralized finance protocol that is used to exchange cryptocurrencies. UNI is the governance token for the Uniswap protocol, allowing holders to vote on changes to the protocol. Built on the Ethereum blockchain, Uniswap enables automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.
Biggest Micro-Cap Gainers in the last 30 days
We review and analyze small and micro market cap cryptos weekly, looking for the next low-cap gem. These are the best-performing (quality) micro-cap projects over the last 30 days:
Best Performing Quality Micro Caps (Last 30 days)
Monthly Altcoin Pick
At the end of next week we will be releasing the next Altcoin Pick (for March).
If you would like access to this and future monthly Altcoin picks, consider becoming a member – It’s only the price of a few cups of coffee a month.
Altcoin picks are emailed to members as soon as they are published. If you are wondering how we choose our monthly Altcoin Picks, this is our methodology.
Our Altcoin Picks for the prior months can be found here.
Thanks and appreciation to all our members!
Until the next report,
Richard.
