Understanding Rank in Cryptocurrency
Rank in the cryptocurrency market refers to the relative position occupied by a digital currency.
Typically, a cryptocurrency’s rank is determined by its market capitalization.
Market capitalization, often referred to as a market cap, is calculated by multiplying the price of a cryptocurrency by its circulating supply at a specific point in time.
Cryptocurrency Rankings
In addition to price and circulating supply, some ranking platforms also consider the 24-hour trading volume of an asset.
Since the inception of cryptocurrencies, Bitcoin has consistently held the top position in terms of rank.
Ethereum has generally maintained its position as the second-ranked cryptocurrency, although there have been instances where it was overtaken by Ripple (XRP).
XRP has typically held the third rank, but it faced a decline in market price and rank due to security allegations from the SEC.
The ranks of cryptocurrencies, apart from Bitcoin, are subject to fluctuations influenced by market sentiment and price movements.
While most individuals track cryptocurrency ranks based on market cap.