Cryptocurrency Market Worth: How Big Is Crypto Now?

When thinking about cryptocurrencies, we are always mentioning their price and profit potential. At the same time, their market cap is something more complex. Why is this the case?

For those who don’t know, the market cap is price-per-share multiplied by a number of outstanding shares. Therefore, the market cap could be the price you would pay for some company, or, in case you want to own all coins in existence, the crypto market worth.            

Similarly, the value or the worth of the market is its market cap. Thereby, the formula goes like this:

Coin Price x Circulating Coin Supply = Market Cap

But, what does this calculation imply on cryptocurrencies? As the price of Bitcoin changes drastically within a day, would this information be valid in the upcoming days?

Data Available Online

By a Statista report, up until 2016, the total market cap was less than $18 billion. After reaching $566 billion in 2017, it fell more than four times, to $129 billion. Nowadays, the crypto market cap is $237 billion, according to Statista.

Other sources like Coinmarketcap, showcase more or less the same values. According to the first Google result, the market cap at the time of the writing is $233 billion. One may think that the difference comes from the number of cryptocurrencies taken into consideration.

However, it is quite different. It is because cryptos bellow the position of 4,000 (CryptoReport, for example) have little to no impact on no total market value. 

So, the market cap is a reliable presentation of the market value of cryptocurrencies. The only issue is that the market cap can change swiftly due to high volatility.

Seemingly, online news foster this volatility. Like for all other subjects, at the same time, you can find different opinions on the same topic. In this case, volatility comes when people change their views. Of course, there are FOMO and FUD, too.

In the first case, people choose what news to follow. A friend of mine, for example, reads only reports that tell that Bitcoin would reach $1 million per unit. Others try to support their opinion to avoid Altcoins. As always, it is a matter of perspective.

In the future, news sites powered by AI will determine what to read. As AI and blockchain share the audience of early adopters, fostering crypto might happen. And it wouldn’t be the matter of our choice, but our personal traits.

Imagine, if crypto supporter – each day you would enjoy news, specifically written for your coin.

Future Value

In the past, even “joke coins” could get significant traction. 

One of these jokes was when Elon Musk changed his bio to the CEO of Dogecoin. However, he removed it soon after as he didn’t want to send misleading information to investors.

In the future, this would be much different. For instance, we already have an IEO. 

As you may know, IEO is an Initial Exchange Offering, and it is a form of battling the problems of ICOs. In the case of IEO, some freshly minted cryptocurrency is paying a listing fee to some crypto exchange. But this serves its purpose.

One reason is that those willing to pay do believe in their coins. Another reason is that IEO means that the exchange is checking these coins. Far from stating that initial ICOs weren’t good.

On the contrary, cryptocurrencies are surviving the test of time. According to a Blockchain Capital interview for Bloomberg, we would have a vertical construction in 2020. What does this mean?

To put it simply, this is the end of the horizontal competition where different coins tried to dominate. In this new prediction of the future of the crypto market, the timeline goes like this:

  • (2009-2011) A public thought that Bitcoin wouldn’t work
  • (2012-2013) Crypto comparison to schemes and work of the criminals
  • (2014-2016) The era of turning to blockchain instead of Bitcoin
  • (2017-2019) Horizontal competition with many ICOs and IEOs, including Facebook’s Libra
  • (2020+) Vertical construction 

In this report, we are entering the age of cryptocurrencies cooperation.

Moreover, we can expect more blockchain solutions from big corporations. Hopefully, this “vertical construction” would add value to cryptocurrencies. And added value pumps the market value.

Imagine blockchain solutions automating multiple processes, and saving billions of dollars!

The Crypto Market

When I am thinking of this, the current market cap is lower than it would soon become. 

Think of it, faster production won’t make people watch more movies. Similar to this, some new healthy food won’t make people eat more.

But what blockchain holds is that it can influence all of these industries. In the case of movies, blockchain can reward viewers for watching. And a transparent supply chain will improve overall health, for sure. That is the power of blockchain.

The fact that the crypto market worth is now over two hundred billion is proving this statement. Created from scratch and reshaping the financial world. I call it a worthy quest.

But what is the limit?

Time will tell, but the $5.1 trillion worth trading on the Forex market is what overall crypto is striving for.

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