The total market valuation of emitted cryptocurrencies comes close to $3 trillion. Just two digital assets, BTC and ETH, account for more than 60% of the cryptocurrency market cap.
Cryptocurrency market capitalization grew to $2 trillion 856 billion. Since the beginning of October, the indicator has grown by almost 50%. Bitcoin accounts for 43.3% of the cryptocurrency market capitalization, while 19.7% is accounted for by Ethereum. Over the past day, the bitcoin rate reached $65,500, adding 5.6%, and the price of ETH approached $4,727, rising by 2.4% over the past 24 hours.
The top five cryptocurrencies by capitalization also include Binance Coin ($108 billion), Solana ($74 billion) and USDT stablecoin ($72 billion).
Cryptocurrency market capitalization consists of the market valuation of 13,791 cryptocurrencies based on data on their price on 429 trading platforms.
However, several analysts repeatedly emphasize the danger of the market capitalization indicator in drawing up an investment strategy. In their opinion, capitalization is applicable to the market of traditional financial assets, and in the world of cryptocurrencies, it is meaningless.
“Market cap is meaningless, easily manipulated, and creates a false sense of value. It’s actually even more than this. It’s downright dangerous because it misleads investors and plays a role in the crypto panics and wild swings that so often impact the space," analyst Anthony Back wrote in 2018. According to him, the focus on such an indicator as capitalization speaks of "investor laziness" and "media’s insatiable appetite for sensationalist headlines."