Monday, August 15, 2022

How Big Is The Crypto Market

Timeline Of The Crash

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  • 17 December 2017: Bitcoin’s price briefly reached a new all-time high of $19,783.06.
  • 22 December 2017: Bitcoin fell below $11,000, a fall of 45% from its peak.
  • 12 January 2018: Amidst rumors that South Korea could be preparing to ban trading in cryptocurrency, the price of Bitcoin depreciated by 12 percent.
  • 26 January 2018: Coincheck, Japan’s largest cryptocurrency OTC market, was hacked. 530 million US dollars of the NEM were stolen by the hacker, and the loss was the largest ever by an incident of theft, which caused Coincheck to indefinitely suspend trading.
  • 7 March 2018: Compromised Binance API keys were used to execute irregular trades.

Understanding The Value Of A Cryptocurrency

Cryptocurrencies usually aren’t governed or backed by any central authority. Government backing can improve faith in the value of a currency among consumers, and it provides a big spender and collector of the currency. But since cryptocurrencies are generally decentralized, they derive their value from other sources, including:

  • Supply and demand
  • Regulations

How Does Crypto Compare To Other Asset Classes

Cryptocurrency is many things to many people. But while people can argue all day long about whether tokens are best viewed as stores of value or mediums of exchange, we can probably all agree on one thing: digital assets are, well, assets.

With this in mind, a good starting point for assessing the value of the crypto market is to compare it to other asset classes: precious metals, real estate, equities, debt securities, etc.

Read Also: How To Convert Bitcoin To Dollar

How Big Crypto Market Cap Can Get

Ah yes, according to PlanB’s stock to flow model, the Bitcoin market cap alone is projected to go to $100 trillion. Cowen’s $10 Trillion market cap peak for the entire crypto market doesn’t sound so impressive against that prediction…. read more

Largest cryptocurrencies by market cap

  • Bitcoin Price: $37,170. Market cap: $708 billion. …
  • Ethereum Price: $2,758. Market cap: $332 billion. …
  • Tether Price: $1.00. …
  • Binance Coin Price: $382.02. …
  • USD Coin Price: $1.00. …
  • XRP Price: $0.603. …
  • Why Crypto Market Is Falling

    Big Crypto News! Where Are Markets Headed?

    An on-going sell-off was seen over the weekend, as BTC fell to the $24,000 level. The crypto Fear and Greed Index still showed a sentiment of extreme fear this indicated that most investors were still extremely bearish, Darshan Bathija, CEO and Co-Founder of crypto exchange Vauld said.

    The recent inflation numbers seen in the US has had a negative effect on most markets. Most investors will be keenly looking at the U.S. Federal Open Market Committee meeting slated for June 14 and 15th. An interest hike by the Fed is already priced in however most investors worry that unless inflation numbers start dropping soon, the Fed will likely have to tighten reigns at a faster pace than anticipated, he added.

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    Institutional Buyers Helped In May

    Institutional investors may be largely responsible for the positive price movement in Bitcoin and Ethereum in the closing week of May.

    It indicates that institutions and high-net-worth individuals have been net buyers throughout this bear market, says Sotiriou. I think this is further evidence that while current macro headwinds exist, Bitcoins supply is being transferred from weak hands to those with long-term conviction.

    Cryptocurrency market weakness has wiped out more than $1 trillion in value so far in 2022. Fortunately, Goldman Sachs estimates cryptos only account for about 0.3% of U.S. household wealth.

    A large amount of cryptocurrency is concentrated in the hands of a relatively small number of whale investors, according to Goldman, which suggests the cryptocurrency sell-off has had little impact on the economy as a whole or the wealth of the average American.

    What Is An Altcoin

    The very first cryptocurrency was Bitcoin. Since it is open source, it is possible for other people to use the majority of the code, make a few changes and then launch their own separate currency. Many people have done exactly this. Some of these coins are very similar to Bitcoin, with just one or two amended features , while others are very different, with varying models of security, issuance and governance. However, they all share the same moniker every coin issued after Bitcoin is considered to be an altcoin.

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    Why Is Market Cap Important

    Price is just one way to measure a cryptocurrencys value. Investors use market cap to tell a more complete story and compare value across cryptocurrencies. As a key statistic, it can indicate the growth potential of a cryptocurrency and whether it is safe to buy, compared to others.

    To demonstrate, lets compare the market cap of two fictional cryptocurrencies.

    • If Cryptocurrency A has 400,000 coins in circulation and each coin is worth $1, its market cap is $400,000.

    • If Cryptocurrency B has 100,000 coins in circulation and each coin is worth $2, its market cap is $200,000.

    • Even though the individual coin price of Cryptocurrency B is higher than Cryptocurrency A, Cryptocurrency As overall value is double Cryptocurrency Bs.

    Still, its also important to note that many cryptocurrencies market cap can swing dramatically due to their volatility.

    Shifts In The Stablecoin Market

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    Investor confidence in the stablecoin market was tested in May when Luna, which is associated with stablecoin TerraUSD , completely collapsed.

    TerraUSD is an algorithmic stablecoin that relies on Luna to maintain its $1 value. Unfortunately, the crypto market sell-off caused UST to lose its dollar peg in May, and Luna crashed all the way to $0.

    Terra has already launched a new version of Luna as a replacement, but the collapse of the original Luna and UST wiped out $60 billion in combined value and raised uncomfortable questions about just how stable stablecoins really are.

    The cryptocurrency market already has a reputation for being extremely volatile and dangerous. The Luna debacle may undermine investor confidence in stablecoins, which are designed to maintain value and are generally considered among the safest crypto investments.

    The global stablecoin market is worth about $159.6 billion. Tether is currently the largest stablecoin with a market capitalization of more than $72.5 billion. Tether briefly lost its peg to the U.S. dollar in May as well, as investors withdrew $7 billion from the stablecoin during the Luna crash.

    The big winner from the instability in Tether may be USD Coin . USD Coins market cap grew from around $42.9 billion on May 1 to nearly $54 billion entering June. USDC provider Circle announced in late May that it will begin providing weekly reports on its reserves and liquidity to reassure investors.

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    Which Crypto Will Explode

    Ethereum It dominates much of the crypto market, approximately 18.49% according to CoinMarketCap. Ethereum is perhaps the most explosive cryptocurrency on this list. If Ethereum explodes again in 2022, it will likely be a very big explosion…. see details

    Large-cap cryptocurrencies are generally considered to be safe crypto investments. These are companies with a market cap of more than $10 billion. Investing in coins with large market capitalisation is usually a conservative strategy…. read more

    Compared To Global Industries And Leading Stocks

    NGRAVE has estimated the total value of the crypto industry at $2.35-2.9 trillion, including many companies not directly involved in cryptocurrency issuance, such as hardware wallets, marketing and media companies, mining companies, blockchain startups , payment networks, crypto-focused venture capital funds, etc.

    Compared to other global industries , it has surpassed the telecom industry .

    Although the crypto industry has almost overtaken the automotive manufacturing sector , it still lags behind the oil and gas exploration and production and food markets.

    Meanwhile, cryptocurrency capitalization with a market value of $22.5 trillion is still far from the global financial services industry.

    Cryptocurrency Cap vs. Global Industries | Source: NGRAV

    Finally, the crypto market cap ranks in the top three when compared to the best-performing stocks in the world, including tech giants.

    The most valuable public company in the world is Apple , followed by Microsoft , while Alphabet ranks third with a market cap of more than $2 trillion.

    However, NGRAVE has shown that Bitcoin is reaching a $1 trillion market cap much faster than these giants. Notably, it took Bitcoin just 12 years, half the time it took Amazon to reach this milestone.

    Cryptocurrency Cap vs. Top Companies | Source: NGRAV

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    Could A Crypto Crash Hurt The Financial System

    While the overall crypto market is relatively small, the US Federal Reserve, Treasury Department and the international Financial Stability Board have flagged stablecoins – digital tokens pegged to the value of traditional assets – as a potential threat to financial stability.

    Stablecoins are mostly used to facilitate trading in other digital assets. They are backed by assets that can lose value or become illiquid in times of market stress, while the rules and disclosures surrounding those assets and investors’ redemption rights are murky.

    That could make stablecoins susceptible to a loss of investor confidence, particularly in times of market stress, regulators have said.

    That happened on Monday, when TerraUSD, a major stablecoin, broke its 1:1 peg to the dollar and fell as low as $0.67 , according to CoinGecko. That move partly contributed to Bitcoin’s fall.

    Although TerraUSD maintains its tie to the dollar through an algorithm, investor runs on stablecoins that maintain reserves in assets like cash or commercial paper could spill over into the traditional financial system, causing stress in those underlying asset classes, regulators warn.

    With more companies’ fortunes tied to the performance of crypto assets and traditional financial institutions dabbling more in the asset class, other risks are emerging, say regulators.

    Which Is The Best Cryptocurrency To Invest In

    Small Cap Names in a Big Crypto Market

    CoinMarketCap does not offer financial or investment advice about which cryptocurrency, token or asset does or does not make a good investment, nor do we offer advice about the timing of purchases or sales. We are strictly a data company. Please remember that the prices, yields and values of financial assets change. This means that any capital you may invest is at risk. We recommend seeking the advice of a professional investment advisor for guidance related to your personal circumstances.

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    Is Crypto Market Cap An Important Metric

    There’s a lot of debate about how much weight should be placed on the size of the cryptocurrency market. Some critics claim that it’s an unwelcome legacy of the stock market leading to misguided investment decisions and contributing to substantial levels of fear and greed.

    However, crypto market caps can also give us a fact-based look at how altcoins are performing a much-needed source of objectivity away from social media.

    What Is Market Cap

    Definition

    For a cryptocurrency like Bitcoin, market capitalization is the total value of all the coins that have been mined. Its calculated by multiplying the number of coins in circulation by the current market price of a single coin.

    One way to think about market cap is as a rough gauge for how stable an asset is likely to be. But the same way a bigger ship can safely navigate heavy weather, a cryptocurrency with a much larger market cap is more likely to be a more stable investment than one with a much smaller market cap. Conversely digital currencies with smaller market caps are more susceptible to the whims of the market and can see huge gains or dramatic losses in their wake.

    Sidenote: you might see references to circulating supply market cap or fully diluted supply market cap. With Bitcoin, those two numbers are the 18.5 million that have been mined or you can use the 21 million that will eventually be mined . Depending on their methodology, some observers will measure market cap using the currently circulating supply, while others will use the fully diluted number.

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    The Current Trend In The Market

    Looking at how different nations are trending, it is always an exciting story about India doing good in this domain. We have seen the global index for other nations, and India is also ranking better. They have talked about 154 nations globally that discuss their presence of different digital currencies in the market. They can fall all around with the three indicators that can help normalize the final figure of zero to one that gave the best score, allowing the higher rankings of the country. The higher the rank, the better the results, and it provides the best score to enjoy the same. If you check the recent development, China ranks higher than any other nation in the crypto market. In September, we see them banning all the crypto-related activities in the nation.

    What Is The Total Market Cap

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    Coins with a larger total supply are usually priced much less expensively. Aside from the value of their blockchain technology, scarcity tends to be a driving factor in a cryptocurrency’s value. Case in point, BTC has an all-time high of $20,000, while Ripple’s record is just $3.84.

    Circulating supply which looks at the number of coins available to the public isn’t the only method for calculating a crypto market cap. Alternatives include calculating the total supply .

    Another is maximum supply. Here, market capitalization is calculated by multiplying an altcoin’s price by the maximum number of coins that could ever exist.

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    Crypto Market Size Vs Equities

    While the crypto market is a pygmy compared to the $122 trillion global equity market , its not in a vastly different universe to the U.S. equity market, which is valued at $50tn, or the E.U. equities market which stands at $14tn. Well take a look at individual company shares later in the article

    Bitcoin Below $3000: Is The Crypto Crash Threatening The Financial System

    CanvaReuters

    Bitcoin fell briefly below $30,000 for the first time in 10 months on Tuesday, according to data site CoinMarketCap, while cryptocurrencies overall have lost nearly $800 billion in market value in the past month as investors fret about tightening monetary policy.

    Compared with the Federal Reserve’s last tightening cycle which began in 2016, crypto is a much bigger market, raising concerns about its interconnectivity with the rest of the financial system.

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    A Variety Of Factors Can Influence The Value Of Bitcoin And Other Cryptocurrencies

    You may wonder what makes cryptocurrency valuable, given that it’s notoriously volatile. It’s not uncommon for Bitcoin to increase or decrease in price by 5% or even 10% on any given day. Smaller cryptocurrencies can have even wider price swings.

    After reading this article, you’ll have a better understanding of what makes cryptocurrency valuable and why the price might swing violently within a single day.

    Whats Cro Crypto Used For

    Bitcoin Volume at $6.4 Billion, Up 2x Since Last Week as Crypto Market ...

    CRO token is the official cryptocurrency of Crypto.coma payment and crypto trading platform. The token can be used to pay for purchases on the platform or to cover transaction fees. Investors can also stake CRO coin to earn interest and grow their wealth. The tokens maximum supply has been reduced to only 30 billion units from 100 billion units following a token burn.

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    How Is Total Cryptocurrency Volume Calculated

    We calculate the total cryptocurrency volume by adding together the volume from all of the pairs on all of the exchanges listed on CoinCodex. The total volume shows us the activity of the cryptocurrency market usually, trading volumes soar during large price swings as traders seek to capitalize on big price movements.

    Finding Value In Cryptocurrency

    If you understand the core principle of supply and demand behind what gives cryptocurrency value and the factors influencing them, you can make better cryptocurrency investment decisions. If you believe demand is going to increase for reasons X, Y, and Z and don’t think supply will keep up, that cryptocurrency could be a good investment. But be aware that governments still don’t have best practices for regulating cryptocurrency, which makes it a particularly risky and volatile investment no matter what.

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    Top Cryptocurrency Prices On June 13

    Ethereum : Ethereum price has fallen by 13 percent to $1277 in the last 24 hours. In the last 7 days, ETH price has decreased by 33 percent. It is currently ranked second largest crypto asset in terms of market capitalisation.

    Binance : Binance Chain coins price decreased by 10 percent to $232 in the last 24 hours. In the last 7 days, BNB price has decreased by 25 percent. It is currently ranked as fifth biggest crypto asset in terms of market capitalisation.

    XRP: XRP coins price decreased by 8 percent to $0.3214 in the last 24 hours. In the last 7 days, XRP price has decreased by 20 percent. It is currently ranked as 7th biggest crypto in terms of market capitalisation.

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    Solana : Solana price has fallen by around 16 percent to $27 in the last 24 hours. In the last 7 days, SOL price has decreased by 36 percent. It is currently ranked as 9th biggest crypto asset in terms of market capitalisation.

    Cardano : Cardano tokens price decreased by 13 percent to $0.4504 in the last 24 hours. In the last 7 days, ADA price has decreased by 30 percent. It is currently ranked as 8th biggest crypto asset in terms of market capitalisation.

    Popular memecoin Dogecoins price decreased by 14 percent in the last 24 hours. DOGE is currently ranked 10th in terms of market capitalisation. The price of DOGE at the time of this report was $0.05694.

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