What is Crypto Market Cap? Here's the Explanation!

What's that crypto market cap there are still many questions asked by beginners who are new to the crypto world. Market cap or market value is one of the simplest and easiest indicators to determine the market size of crypto assets. 

This section is also used as a reference for investors in making investment decisions. What is a crypto market cap? We will explain it simply in this article.

What is Crypto Market Cap? 

Market cap or marcet cap for short is the total value of a financial asset (stocks, crypto, forex and so on) distributed at current market prices and usually expressed in dollars. Market head is a term that is commonly heard and is the Indonesian translation of head market. 

Shobit Seth from Investopedia revealed that market capitalization is often used to classify companies as large, medium or small.

Investors and auditors use stock market capitalization to compare and estimate the market value of companies. The same goes for cryptography.

The market value of a stock reflects the risk of investing in a particular company or asset. Large cap stocks tend to be less risky, but grow at a slower rate than medium or small cap stocks.

Crypto market cap is an important metric for understanding cryptocurrency market size. Key cryptocurrency market information can provide cryptocurrency performance data and insights and help investors make investment decisions.

Highest Crypto Market 

The following is a list of crypto assets that hold the top five positions by market capitalization or market capitalization on the CoinMarketCap website, as of today. 

Bitcoins (BTC) 

Bitcoin is the oldest and most popular crypto asset in the crypto market. Created in 2009 and starting to gain popularity in 2011, the price of BTC and IDR at the time of writing stands at IDR 662 million with a market capitalization of IDR 12.584 trillion. 

Ethereum (ETH) 

Ethereum is not just a crypto asset, it is an open source project that uses blockchain technology. This crypto is created with a special programming language that allows developers to build and run decentralized applications (Dapps). Did you know that NFT technology was also first discovered by the Ethereum blockchain?

Tethers (USDT) 

Tether is one of the most popular coins on the crypto trading market. Stablecoins are crypto assets that are equal in value to fiat currencies. USDT itself is pegged to the US dollar, so 1 USDT costs one US dollar. 

Also read: LATEST! These are 383 Legal Crypto Assets in Indonesia

Binance (BNB) 

Binance Coin (BNB) is an ERC-20 based crypto commodity issued by one of the leading crypto asset platforms, namely Binance. In 2017, Binance launched this crypto asset through an initial coin offering (ICO).

Although small, BNB managed to rank fourth in market capitalization with a price of 1 BNB IDR 6 million and a market capitalization of IDR 1.058 billion. 

In conclusion, when there is still a question what is crypto market cap, the answer is; market cap is a useful measurement tool to compare the total value of crypto assets.

Also read: 5 Crypto Applications Listed at Bappebti, Perfect for Beginners!

However, market trends, price stability of cryptocurrencies, and your financial situation must also be taken into account before deciding to invest.