The market capitalization of Crypto Assets is an indicator calculated by multiplying the current unit price by the circulating supply, used to measure the overall value of that coin in the market. For example, if a certain coin is priced at 100 USD and the circulation is 10 million pieces, then the market capitalization of that coin would be 1 billion USD.
The size of market capitalization reflects the market acceptance and influence of a coin. A high market capitalization usually means active trading and sufficient liquidity, with relatively lower risk. Coins with smaller market capitalizations tend to be more volatile but may also have high growth potential.
By 2025, Bitcoin ranks first with its massive circulating market capitalization, while other well-known market capitalization coins include Ethereum and others. These coins represent the mainstream and stable forces of the crypto market.
Investors can choose stable coins based on market capitalization, or challenge potential new coins with small to medium market capitalization, but must comprehensively assess project technological progress, team quality, and market trends to avoid relying solely on market capitalization as the only investment criterion.
Understanding market capitalization rankings helps to accurately position the market status and growth opportunities of Crypto Assets. Beginners should take market capitalization as an important reference, combining various information to formulate reasonable and cautious investment strategies.