Mid Cap
Mid Cap refers to cryptocurrencies that have a medium-sized market capitalization. The term isn't inherently exclusive to the world of crypto; it is borrowed from the traditional stock market terminology. However, when applied to cryptocurrencies, it has its unique dimensions.
Market Capitalization
Market Capitalization refers to the total dollar value of a company's outstanding shares of stock, often used as an indicator of a company's size and growth potential. In the cryptocurrency world, it's the total dollar value of a cryptocurrency's outstanding coins or tokens. This is calculated by multiplying the total supply of coins or tokens by the current price of one unit.
The Mid Cap Range
In cryptocurrency, there isn't a set rule for what is considered as Mid Cap. The ranges can vary based on the total market cap of the cryptocurrency sector at a certain time. However, a generally accepted range is from $1 billion to $10 billion in market capitalization.
Features of Mid Cap Cryptocurrencies
- Level of Risk: Mid Cap coins are generally considered to have a moderate level of risk. They are not as established as large cap coins like Bitcoin or Ethereum, but they have demonstrated a certain level of stability and acceptance in the market.
- Growth Potential: Since these coins are not yet at the top of the market, they have the potential for significant growth. Investors may choose to invest in them with the hope of higher returns, but it also comes with increased risk.
- Market Volatility: Due to their size, Mid Cap coins could be more volatile than large cap ones. They can experience larger price swings, which represents both an opportunity and a risk for investors.
Examples of Mid Cap Cryptocurrencies
While it will always change based on the market values, cryptocurrencies such as Litecoin, Chainlink, and Stellar have been examples of Mid Cap in the past. It's essential to use a reputable cryptocurrency market cap tracker to stay updated on the current Mid Cap cryptocurrencies.