Capitalization of cryptocurrencies, capitalization rating, cryptocurrency market forecast

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The total capitalization of cryptocurrencies from the TOP-100 list is currently $246.453 trillion. It changes daily depending on the market rate of a particular coin. In this case, the term "capitalization" is a numerical value equal to the product of the number of coins and their value. If there are 10 banknotes (or securities) in circulation, the price of each is $1, then the capitalization will be $10. If the price of the coin decreases to $0.9, then the capitalization will be $9.

Capitalization of cryptocurrencies in 2017 increased significantly due to their greater popularization. Many investors saw powerful speculative opportunities in them, and therefore invested in them. Capitalization is the figure that strongly depends on the price of one coin. Therefore, their rise in price leads to growth and the capitalization itself. These are natural phenomena that allowcryptocurrencies to settle in the niche of market speculation.

TOP-10 cryptocurrencies

The current capitalization of cryptocurrencies and the rating based on it are taken as of 2017-22-11. The Bitcoin currency is the leader while its total value is $3.584 trillion. The second line is occupied by Bitcoin Cash, which has a capitalization of $1.46 trillion. The third line belongs to the Etherium currency, all coins of which today are worth $664.76 million. The fourth line belongs to the cheap Tether cryptocurrency, all banknotes of which are worth $500 million. Dash came in fifth with a total value of $348.11 million, followed closely by Power Ledger with a total of $172 million.

Seventh place is Litecoin with a capitalization value of $154.28 million, and eighth place is the banking cryptocurrency Ripple with a total price of $150.58 million. The ninth place in the ranking was occupied by Monero with a capitalization of $137.19 million, and the tenth place was taken by Zcash, whose total value is $131 million. It should be understood that the capitalization of cryptocurrencies and their place in the ranking are not permanent phenomena. They are highly dependent on the value of one coin, so the place in the TOP can constantly change.

Reasons for growth in capitalization

Success in increasing the market capitalization of cryptocurrencies in 2017 is closely related to the participation of Chinese investors in the process of withdrawing capital from China. It is known that it is impossible to carry it out by converting into US dollars due to legislative prohibitions. And keep the earningsmoney equivalent to trillions of US dollars, against the backdrop of the devaluation of the yuan, is needed somewhere. Cryptocurrencies, mainly bitcoin and ether, were used as a tool used to save money and withdraw it from China.

Forecast of capitalization changes

Obviously, in a situation where the yuan continues to devalue against the dollar, the growth of the exchange rate and capitalization of cryptocurrencies will accelerate. Over the past 3 months, the Chinese yuan has won back against the US dollar and has become stronger, which immediately affected the quotes of Monero, Zcash and Dash. As it turned out, they were most affected by the return of capital to the rising yuan. Bitcoin was not affected by this fate, since it has already become a speculative instrument, the rate of which is supported by demand.

In 2017, it behaved like a strong stock with an uptrend. From its price, the market capitalization has also grown significantly, which will gradually increase for at least another 9 months. If the main states succeed in legalizing cryptocurrencies, their capitalization will increase many times over. However, it will take a long time to wait for recognition, and with it an avalanche-like growth in the capitalization of the main cryptocurrencies.