What is CoinMarketCap and crypto wallets in 2024

Imagine that you are willing to invest your hard-earned money in something that can provide you with an exponential rate of return. Will you invest in some asset that you do not understand? The answer is no; investing is one thing you should do after you have done ample research. One of the key parameters is the market cap of the asset. In this blog, I will take you in depth into a financial instrument that is transforming the investor’s life. You will read about crypto, coin market capital, coinmarketcap, crypto wallets, and decentralized exchange.

Increasing Cryptocurrencies and Their Relationship with Coin Market Cap

In the last couple of years, talk about the crypto market cap has been a hot topic around the globe. There were rumors around crypto regulations and the actual worth of these financial assets. Hence, the need for a coin market cap (CMC) came into existence.

CoinMarketCap is a prominent website that has very useful data for people who want to invest in cryptos. Furthermore, coin market cap is an advanced metric to determine the total value of all cryptocurrencies that are in circulation or mined. 

Calculation of Crypto Market Value

The method of calculation of the total coin value is simple; it is calculated by multiplying the total number of coins in circulation by their current price. For example, if there are 19,640,693 bitcoins and their current value is $53,000 per coin,

Total valuation will be = (19,640,693) x (53,000) = $10,40,95,67,29,000

The CMC (coinmarketcap) defines the dominance of any crypto coin. The more dominant the currency is, the bigger the market cap it can have. The market cap is divided into basically three categories:

• Large-cap (>$10 billion) 
• Mid-cap ($1 billion to $10 billion) 
• Small-cap (<$1 billion)

It is seen that small-cap cryptocurrencies are more volatile in nature. However, I recommend that you do your research before making any kind of investment. 

Fun Fact: Coinmarketcap throws a special kind of award party every year known as “Oscars for Crypto.”

Who is the owner of CoinmarketCap?

In the year 2013, Brandon Chez founded CoinmarketCap, which was later acquired by Binance Capital Management in March 2020. It is a nice place that has a large community of crypto enthusiasts who need a platform where they can discuss the challenges of crypto investments.

The current market capitalization of the top cryptocurrencies

The total value of different cryptocurrencies is determined by various factors, such as current prices, the number of coins in the market, etc. Below is the list of the market capitalizations of the top 5 cryptocurrency 

1. Bitcoin (BTC) – Market Cap: $1,230.63 billion
2. Ethereum (ETH) – Market Cap: $416.63 billion
3. Tether (USDT): Market Cap: $98.72 billion
4. Binance Coin (BNB) – Market Cap: $62.08 billion
5. Solana (SOL) – Market Cap: $55.50 billion

  Source:Yahoo Finance.

Below is the table depicting top cryptocurrencies with their year of foundataion and year-to-year return rate

There are a number of new cryptocurrencies that get listed on exchanges every year. In 2023–2024, there were around 10,748 cryptocurrencies in circulation, and around 8,848 were considered active. The actual number may vary, but CoinMarketCap regularly tracks and lists new cryptocurrency. 

How the Cryptocurrency Exchange decides to list a Crypto coin

There are some key considerations when listing any new cryptocurrency on an exchange. Some of them are listed below.

1. Liquidity

Significant and persistent liquidity motivates exchanges to list the crypto for a smoother trading process.

2. Community Support

Communities dealing with projects with futuristic vision and real-life utility are favored by exchanges.

3. Market Demand

Before listing the cryptocurrency for trading, exchanges analyze the current demand for that particular crypto.

4. Decentralized Finance Platforms

Exchanges give preference to those cryptocurrencies that are available on DeFi platforms and also offer DeFi applications.

5. Security and Compliance

Exchanges prioritize cryptos that have gone through various legal compliances and security processes.

Understanding Decentralized Exchange (DEX)

A decentralized exchange is like a safe digital marketplace where people can trade different cryptocurrencies directly with each other from any part of the world. The prominent benefit of DEX (Decentralized Exchange) is that this platform does not require any middlemen or banks to complete the crypto transactions. 

What is the relationship between DeFi and cryptocurrency trading? 

Decentralized finance(DeFi) is an advanced and innovative concept that leverages blockchain technology to provide a wide range of services in a decentralized manner. DeFi replaces centralized institutions with peer-to-peer interactions. 

In addition, Decentralized Exchange (DEX)  within the DeFi sphere supports direct crypto currency, enhancing accessibility and liquidity. Smart contracts (self-executing agreements) on secure networks automate transactions and enable advanced financial activities. 

Understanding Crypto Wallets

A crypto wallet is a digital tool that stores private and public keys needed to receive, send, and store various cryptocurrencies from any part of the world. Forms of these crypto wallets can be in the form of software, hardware devices, or online services. Crypto wallets play a crucial role in interacting with decentralized applications, enabling transactions, and managing different cryptocurrencies assets. Below is a list of some known crypto wallets:

1. Trust Wallet
2. SafePal
3. Trezor Wallet
4. Crypto.com Defi Wallet
5. Coinbase Wallet

Final Thoughts

The world of cryptocurrencies is evolving, from Bitcoin and Ethereum to newly founded coins such as Picoin and Safemoon, which have potential. Crypto enthusiasts are participating in crypto bubbles by exploring big crypto exchanges like Binance and Coinbase and new ones like Bitget and CoinDCX. 

Investors are also uncovering the mysteries of crypto mining while keeping an eye on their investments through platforms like CoinTracker. In the vast sea of financial assets, finding the best crypto to invest in can be a challenging task.

Traditional financial ecosystems are being reshaped with new blockchain technologies (Amazon Crypto, Binance Card).

In the above blog, we tried to take you through CoinMarketCap. You also read about the most active cryptocurrencies list and the crypto wallets. In addition, new technologies such as decentralized exchange (DEX) and decentralized finance (DeFi) are going to take the world of finance by storm in 2024.

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Frequently Asked Question

1. What is CoinMarketCap used for?
CoinMarketCap is a leading platform for tracking cryptocurrency prices, providing unbiased information to empower users in making informed decisions.

2. What are the requirements for CoinMarketCap listings?
Projects need a functional website, block explorer, public trading on an exchange, and open communication with a project representative.

3. How can one earn money with CoinMarketCap?
Earn through crypto mining, affiliate programs, NFT markets, crypto games, and participating in airdrops for free crypto.