Market caps, or capitalization, refer to each cryptocurrency’s total value in dollars.
Stuck at home during the pandemic, many moved towards e-commerce, and cryptocurrencies have grown in popularity. However, since reaching a high in the fall of last year, many coins have seen significant decreases in their value.
In March, the total value of the cryptocurrency market reached two trillion dollars.
At $758 billion, Bitcoin has the highest market cap of all cryptocurrencies on the market. Currently, each Bitcoin costs $36,939, down twelve percent from this time last year. The crypto hit an all-time peak in price in October at $56,258.
Bitcoin knocks all other cryptos out of the water.
Ether, the crypto trade under the Ethereum network, is the second most valuable currency, has a market cap of $363 billion.
This coin has increased in value recently as it has become one of the most common in the trade of NFTs.
The third crypto with the highest cap is Tether.
Tether is unique because it is a stablecoin, meaning that the value of each coin is pegged. For teacher, the price is attached to one US dollar. The pegging of currencies to a currency allows traders to depend on it for regular transactions. However, Bankrate, the online financial news outlet, has reported that some market insiders worry that “Tether isn’t safely backed by dollars held in reserve but instead uses a short-term form of unsecured debt.”
Binance coin, valued at $414 apiece, is one of the most commonly traded cryptocurrencies with a total market cap of $68 billion. With over ninety million registered users around $76 billion worth of Binance coin are traded daily.
The USD coin, like Tether, is also pegged to the US dollar.
This coin is the fifth highest value crypto with a total market cap of $50 billion.
However, unlike the other anchored currency, the firm tasked with the trade of this crypto is “backed by fully reserved assets or those with “equivalent fair value” and those assets are held in accounts with regulated U.S. institutions.”
Getting into cryptocurrencies
For those hoping to begin investing in cryptocurrencies, one should be aware that the market fluctuates rapidly, and there are no guarantees. The decline of more than $20,000 in the value of Bitcoin is a prime example of this volatility.
The Binance blog has advice for novice investors getting into the crypto markets. If you are thinking about selling because you are worried about volatility in the market, Binance advises that you only sell five to ten percent at a time. This strategy could be risky in some cases where the coin’s value is falling, and there are no indications that it will regain its market power.