Market capitalization (or market cap) is the total dollar value of all the shares of a business’s stock– or, in the case of Bitcoin or another cryptocurrency, of all the coins that have actually been mined. In crypto, market cap is calculated by multiplying the overall number of coins that have been mined by the rate of a single coin at any offered time.

From Bitcoin and Ethereum to Dogecoin and Tether, there are countless different cryptocurrencies, which can make it frustrating when you’re first starting on the planet of crypto. To assist you get your bearings, these are the top 10 cryptocurrencies based on their market capitalization, or the total value of all of the coins presently in circulation.

One way to think of market cap is as a rough gauge for how stable a property is most likely to be. (It’s crucial to keep in mind that even Bitcoin, crypto’s greatest market cap, still sees volatility.) However the same way a bigger ship can securely 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 sized market cap. Conversely digital currencies with smaller market caps are more susceptible to the impulses of the market– and can see huge gains or dramatic losses in their wake.

Rate is just one method to measure a cryptocurrency’s value. Financiers utilize market cap to inform a more total story and compare value across cryptocurrencies. As a crucial statistic, it can show the growth potential of a cryptocurrency and whether it is safe to buy, compared to others. For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the overall value of all the coins that have been mined. It’s calculated by increasing the variety of coins in circulation by the present market value of a single coin.

5 years earlier, if you wished to inquire into the state of the cryptocurrencies market, the first concern you would ask would most likely be about the rate of Bitcoin. Although having actually already lost much of its synonymity with crypto and blockchain technology in general, Bitcoin was still considered the crucial market anchor and the most reputable indication of what was to come.

Computing the stock market’s capitalization is generally done by multiplying the last rate of the stock trading by the total variety of stocks in public blood circulation. In the case of ‘traditional shares’, the value of shares is backed by economic basics such as total assets (liquid assets, tangible assets and intangibles) and anticipated future capital. As a result, standard stock prices and total capitalization value are pretty reflective of the general state of a business. With crypto, this relationship is more ambiguous. Cryptocurrencies have no liquid assets, no concrete assets, and very limited intangible ones that can back and validate their present rate and market capitalization.

Terra stablecoins and Luna work in concert according to supply and demand: When a stablecoin’s cost rises above its tied currency’s value, users are incentivized to burn their Luna to produce more of that Terra stablecoin. Similarly, when its value falls compared to its base currency, this motivates users to burn their Terra stablecoins to mint more Luna. As adoption of the Terra platforms grows, so too does the value of Luna.

token digital is a blockchain payment platform for stablecoins that depends on keeping a balance in between two types of cryptocurrencies. Terra-backed stablecoins, such as TerraUSD, are connected to the value of physical currencies. Their counterweight, Luna, powers the Terra platform and is used to mint more Terra stablecoins.