Open interest (OI) is the total value of outstanding derivative crypto contracts that have not been settled yet. No, market cap alone should not be used to determine the strength of a coin’s investment potential. It should be used as an insight, alongside consideration of other factors such as use case potentials, ownership and development structure, and the underlying blockchain technology. In traditional financial markets, “free float” metrics can differentiate between shares that are available to be publicly traded, and those that are held in “lock up,” perhaps by company founders, directors or executives. This essentially differentiates between the total (or “maximum”) supply and the circulating supply of shares.

What Is Crypto Market Cap?

This process controls how many of the cryptocurrencies from the global market are represented on our site. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility. It is important to consider both market cap and price when assessing the potential of a cryptocurrency. A low price combined with a high market cap may indicate a large user base and high how to access crypto wallet level of adoption, suggesting long-term viability. Another factor that can impact market cap is the level of adoption and use of an asset.

1. Some coins are lost over time, and others may simply remain stagnant in anonymous wallets.
2. Market cap of a cryptocurrency is calculated by multiplying the price of the coin / token and its circulating supply.
3. From the very first day, the goal was for the site to be the number one location online for crypto market data, and we work hard to empower our users with our unbiased and accurate information.
4. Hot wallets are able to be connected to the web, while cold wallets are used for keeping large amounts of coins outside of the internet.
5. There’s a lot of debate about how much weight should be placed on the size of the cryptocurrency market.

We Provide Live and Historic Crypto Charts for Free

We do not cover every chain, but at the time of writing we track the top 70 crypto chains, which means that we list more than 97% of all tokens. Here at CoinMarketCap, we work very hard to ensure that all the relevant and up-to-date information about cryptocurrencies, coins and tokens can be located in one easily discoverable place. From the very first day, the goal was for the site to be the number one location online for crypto market data, and we work hard to empower our users with our unbiased and accurate information. Another misconception is that market cap is the sole determinant of a cryptocurrency’s potential for growth.

Some cryptoassets, such as Bitcoin (BTC), have limits to their maximum supply, meaning a predetermined number of coins will ever exist. Traditionally, market cap indicates the total value of shares of a company’s stock. The crypto industry has adopted market capitalisation, or “crypto market cap,” as a similar metric to indicate the overall market value of any given cryptocurrency. The live Bitcoin price today is $62,109.31 USD with a 24-hour trading volume of $28,016,160,009 USD. The current CoinMarketCap ranking is #1, with a live market cap of $1,227,595,676,215 USD. We calculate the total cryptocurrency market capitalization as the sum of all cryptocurrencies listed on the site.

Since old nodes will recognise the new blocks as valid, a soft fork is backward-compatible. This kind of fork requires only a majority of the miners upgrading to enforce the new rules. Over the years the most secure bitcoin wallets in the uk a large number of people have contributed to improving the cryptocurrency’s software by patching vulnerabilities and adding new features.

Common Misconceptions About Crypto Market Caps

Some concepts for a similar type of a decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use. Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions. Positive news and developments surrounding cryptocurrencies can increase buyer confidence and drive how to buy request network up market cap. Conversely, negative news or regulatory actions can lead to a decrease in market cap.

Global Live Cryptocurrency Charts & Market Data

Multiplying the two tells us what the crypto market cap is — in this case, $2.5 billion. The world of crypto now contains many coins and tokens that we feel unable to verify. In those situations, our Dexscan product lists them automatically by taking on-chain data for newly created smart contracts.

Market cap allows for comparison between coins, enabling investors to compare the relative size and value of one cryptocurrency with another. Data from a wide range of cryptocurrencies can further indicate the total crypto market cap, as a measure of how the asset class is performing overall, relative to commodities or CFDs, for example. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction.