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Author: Admin | 2025-04-27
Large-cap.Small-cap cryptocurrenciesSmall-cap cryptocurrencies tend to have market caps under $1 billion. Compared to other coins, they usually have less exchange support, lower volume, or both. For this reason, small market movements can create volatile swings for these small-cap cryptocurrencies.Mid-cap cryptocurrenciesMid-cap cryptocurrencies have capitalisations between $1 billion and $10 billion. Traders often look to mid-cap coins to predict growth potential. Yet since these cryptocurrencies haven’t established large-cap positioning, there is still a greater level of risk involved.Large-cap cryptocurrenciesLarge-cap cryptocurrencies with capitalisations of more than $10 billion. These are your ‘household name’ coins; Bitcoin, Ethereum, XRP, and more. These cryptocurrencies have a relatively higher trading volume compared to other crypto assets.Bitcoin, Ethereum, Tether, BNB and Solana are examples of Large-cap cryptocurrencies. Image: ShutterstockWhy Are Large-Cap Cryptocurrencies Considered to Have Lower Risk Profile?It goes without saying that cryptocurrency investments are more often than not more volatile than stocks or any other traditional investments. That said, investors see large-cap cryptos as stable investments within a volatile market. The large-cap coins which have shown growth over time (not overnight growth) usually have high liquidity, characteristics similar to the largest and long-standing publicly listed companies – stalwarts like General Motors, Ford and other multinational giants.So if many investors decide to market and sell these larger assets at once, price and market cap drops will be smaller compared to a sell-off of small or mid-cap market assets.Market Cap vs. Cash InflowMarket cap and cash inflow are often confused because both are expressed in dollar amounts, but they represent very different concepts.Market Cap is the total value of a cryptocurrency, calculated by multiplying the current price of one coin by the total number of coins in circulation. It’s a snapshot of the coin’s overall value, not the amount of money that has been invested or is currently in the market.Cash Inflow, on the other hand, refers to the actual money being invested into the market—new funds coming in to buy the cryptocurrency.Market cap can change due to fluctuations in the coin’s price, even if no new money is entering or leaving the market. For example, if the price of a coin goes up, the market cap increases, but this doesn’t mean that more cash has been invested.It’s important to recognise that market cap is not a direct measure of cash inflow; it simply reflects the current value based on price changes and the total supply of coins.Other Metrics
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