Market cap, short for market capitalisation, is the total value of all mined coins in circulation. It can be calculated by multiplying the current price of a specific coin or token with the total number of that specific coin currently in circulation.
A market cap provides investors with a great indication of how stable that coin is likely to be. While cryptocurrencies are volatile by nature, those coins with bigger market caps offer more stability to investors. Large-cap cryptocurrencies usually have a value higher than $10 billion, while small-cap cryptocurrencies usually have a value below $1 billion.
Mid-cap cryptocurrencies have market caps that range from $1 billion up to $10 billion and attract investors with their untapped potential. These cryptocurrencies are well established and are steadily expanding with an expectation of swift future growth.
Why should you consider market capitalisation before buying crypto?
Market capitalisation gives investors a very good indication of how stable their investment is likely to be. It provides an all-inclusive view of the crypto market when you want to compare value from a range of cryptocurrencies.
Typically, coins with large market caps have more stability and easily attract investors. For those people who are looking towards long-term investments, small-cap cryptocurrencies should be avoided as they are susceptible to volatile market swings that could leave your investment in tatters. Mid cap cryptocurrencies offer an element of stability with fantastic potential to improve.
By using market cap as a reference, investors can get detailed comparisons about the value of various cryptocurrencies in circulation in order to make more informed investment decisions.
What is a mid-cap cryptocurrency?
Mid-cap cryptocurrencies can be described as a sweet spot for investors as they have proven their value over a sustained period and still offer plenty of opportunities for growth. Although still volatile by nature, they do have enormous potential with an element of controlled risk – the perfect combination for a smart investment.
Mid-cap cryptocurrencies are more volatile than large-cap cryptocurrencies and carry a higher risk of investment. It can be said that coins classified as mid caps are in the stage of increasing their utility and are on a steady upward trajectory towards reaching their true potential.
Due to these dynamics, mid cap coins offer a higher growth potential than the more established large-cap coins. In an overall sense, mid-cap coins usually perform well over the long term and are a great option for those investors who want to diversify their portfolio.
Top 3 mid-cap cryptocurrencies for 2021
The top 3 mid-cap coins for 2021 are currently Polygon, Solana, and Stellar.
Polygon takes first place and has a market cap of just above $10.2 billion, down 16.93% from the last week. Its unit price is an attractive $1.63. Solana is firmly in second place with a market cap sitting at just over $10 billion, up approximately 17.90% from the last week. Its unit price is hovering around $37.10 at the time of writing. Stellar is in third place with a market cap of just over $8.9 billion, down approximately 3.42% from the last week. Its unit price is sitting around $0.38 at the time of writing, pipping VeChain and Ethereum Classic to third place and fractionally down 3.6% from the last week.
Overview of Total Market Cap
At the time of writing, the total crypto market cap is sitting at $1.78 trillion; a rise of 6.59% from the previous 24 hours with Bitcoin, Ethereum and Binance Coin leading the pack up top.
For those people who are looking to invest in cryptocurrencies, it is wise to consider the top 3 mid-cap cryptocurrencies due to their established profiles and incredible potential for growth. For those who want to diversify their investment portfolio, mid-caps should surely feature on their list. Make sure to use established platforms like Wisly to track and analyse your mid-cap investments, and maximise your performance. Good Luck!