What is Market Cap, and How Important is It to Analyze It?
Analyzing crypto by market cap provides a vision of the asset’s importance in the market. In addition, it indicates the level of the project’s popularity and its place in the industry. Looking at the market cap indicator, you can see how popular the project is. For instance, if the capitalisation is over $10 billion, the project is large and considered a safe investment option. Crypto assets with considerable market cap are less volatile and thus safer. Examples of digital assets with large market cap are:
- Bitcoin
- Ethereum
- XRP
- Cardano.
Crypto assets with middle market capitalisation are more volatile but still worth attention, for they have room for growth and more changes for price growth and, thus, market cap growth compared with assets with large capitalisation. Examples of such coins:
- Polygon
- Polkadot
- Tron
- Solana
- UniSwap.
Small market capitalisation assets are those with a cap indicator of less than $500 million:
- OpenDAO
- Energy
- Atari Token
- MultiversX.
Why is it worth investing in coins with small capitalisation? The matter is that they have room for growth, and either by increasing the number of coins or growing the price, project developers can boost the market cap, bringing the coins to a higher position in the ranking and increasing their popularity and adoption. And vice versa projects with large cap experience difficulties in multiplying, for it requires much more effort to increase the price or number of coins.
If you want to buy coins, welcome to the WhiteBIT crypto exchange. It provides safety for transactions and quality tools for efficient trading. You can track cryptocurrency rates live and market cap right on the WhiteBIT platform.
