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Author: Admin | 2025-04-27
Can ever exist. Some cryptoassets, such as Bitcoin (BTC), have limits to their maximum supply, meaning a predetermined number of coins will ever exist. Others, such as Ethereum (ETH), have an infinite supply.On the other hand, circulating supply refers to the number of coins that exist in open circulation (free float) at any given time.These metrics can differ. As well as a potentially significant volume of privately issued or owned coins held in lockup, there are also coins awaiting release in an ICO. Some coins are lost over time, and others may simply remain stagnant in anonymous wallets. Tip: Investors should understand how various factors can influence the total and circulating supply of a cryptoasset.Generally, market cap calculations are determined using circulating supply metrics. But, when calculating or considering market cap, it is crucial to be aware of which metrics have been used and to understand the implications that either may have on the outcome.How are crypto market caps categorized?Cryptocurrencies fall into one of three categories, depending on the value of their market cap:Large-cap cryptocurrenciesLarge-cap cryptocurrencies have a market cap of over $10 billion. They are generally considered lower-risk investments, as they have more liquidity and are better able to withstand market volatility. Medium-cap cryptocurrenciesMid-cap cryptocurrencies have a market cap of between $1 billion and $10 billion. They are widely considered to be medium-risk investments because although they are more volatile than large-cap cryptoassets, many investors believe that untapped opportunities lie within coins of this category. Small-cap cryptocurrenciesSmall-cap cryptocurrencies have a market cap of lower than $1 billion, and are deemed to be the riskiest investments. While they have greater upside potential, small-cap coins are most susceptible to market volatility and generally have lower liquidity to withstand sudden, or high-volume, market movements.What are the largest crypto market caps?The chances are, even for those new to crypto, investors will be familiar with some of the largest market-cap cryptocurrencies.Bitcoin (BTC) is the largest crypto by market cap. It was the world’s first cryptocurrency and has revolutionized decentralized finance. According to eToro data, as of December 2023, it had a market cap of $815.45 billion. Ethereum (ETH) is the second-most-popular cryptoasset, popularized by the ability to build upon its blockchain and facilitate the use of decentralized applications (dApps). According to eToro data, as of December 2023, it had a market cap of $260.95 billion.XRP (XRP) assists with currency exchange and cross-border payments. It allows businesses to send money overseas quickly and affordably. According to eToro data, as of December 2023, it had a market cap of $32.34 billion.Solana (SOL) is the native token of the Solana blockchain, which can facilitate the creation of dApps. The SOL token itself can be used within the
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