Mid Cap

November 21, 2023 - Around 3 mins mins to read

What Is Mid Cap?

A cryptocurrency’s true value is determined by a metric called market cap, which is divided into three categories: large cap, Mid Cap, and small cap. All digital tokens or coins listed on crypto-asset price tracking platforms fall into one of these categories. Market cap is a metric that indicates the dominance and popularity of a cryptocurrency.

In the crypto world, market capitalization is often calculated by multiplying the number of tokens by their price (total number of tokens x price of a token). The circulating cap, which is the difference between the total number of tokens currently in circulation and the total number that can be created, is also taken into account.

By categorizing crypto projects based on their market capitalization, we are essentially categorizing them based on their popularity and risk level. This categorization reflects the level of risk associated with investing in a cryptocurrency, taking into consideration factors such as project strength, fundamental values, volatility, liquidity, and responsiveness.

Mid Cap cryptocurrencies and tokens have a market capitalization ranging from $1 billion to $10 billion dollars. These initiatives are well-established, growing, and expected to expand significantly in the future. Some of the most popular Mid Cap currencies and tokens in this category include PolkaBridge, Litecoin, Monero, and Binance Coin.

Mid Cap cryptos have a lower market cap compared to large-cap cryptos, but they have greater growth potential. This is because some of them are still expanding their market or use cases. However, they can also experience further depreciation, which is why they are often considered riskier.

Due to their relatively lower establishment, the value of Mid Cap cryptos can fluctuate.

On average, Mid Cap cryptocurrencies perform well over time, and including them in your portfolio is a solid diversification measure. However, it is important to note that not all coins have the potential to become high caps or perform exceptionally in the market.

Thorough research should be conducted before investing in a Mid Cap coin, as it may be a good investment in certain situations. Many Mid Cap coins, such as MOVR, FLUX, and GALA, have shown strong fundamental growth, but some of them have also disappeared from the crypto market entirely.

While market capitalization is an excellent indicator of popularity and dominance, it is not the sole criterion for selecting a cryptocurrency. Other factors to consider include the project’s core team, fundamentals, technicals, and value proposition.