The cryptocurrency market covers much more breadth than the traditional markets, especially at the lower capitalization levels. For better market analysis, we have categorized the cryptocurrency market into eight different levels. Here is how we refer to the various levels of capitalization within this market:
Mega >$200 Billion
The mega-market capitalization level is the highest capitalization level available in the cryptocurrency market. Cryptocurrencies that are in excess of $200 billion are included in this level. At the time of writing, only Bitcoin and Ethereum fall into this category.
Large $10B - $200B
The second-largest classification are those cryptocurrencies that are traded between $10 billion and $200 billion. The cryptocurrencies which fall into this categorization are generally the top twenty cryptocurrencies (by market cap).
Projects that fall within the Mega and Large market capitalization level can also be considered the blue-chip within the market as these cryptocurrencies are generally considered the most popular and stable (relative) of cryptocurrency investments.
Mid-Market $1B - $10B
At any given time there are around 50–60 projects which fall into this level of market capitalization and it includes projects with a market capitalization of $1 billion to $10 billion.
These cryptocurrencies are considered to have a much higher degree of volatility than large and mega capitalization and offer the investor an opportunity to find high-growth projects.
Small Market $100M - $1B
At any given time there are around 160–180 cryptocurrency projects which fall into the small market capitalization level. Within the small-market capitalization is where we start to find cryptocurrencies with the greatest potential for growth and return on investment. Although this category offers a higher potential for growth, they also have the potential for high volatility.
Micro Market $10M - $100M
There are anywhere between 500 and 700 crypto projects which fit into the Micro-Market level and the prices for these projects can range anywhere from a couple of hundred dollars to fractions of a penny.
It's within this category we find the largest proportion of what is commonly referred to as 'penny cryptos'. The micro-market includes projects with a market capitalization of between $10 million and $100 million. These are cryptocurrencies that are often traded under one penny. While many of these coins have the potential for massive percentage gains given their low value, they are also highly volatile.
Nano Market $1M - $10M
Market Capitalization between $1 million to $10 million is considered the Nano Market. There are anywhere between 700 to 1,000 cryptocurrency projects which fit into this level.
It's within this market capitalization level some of the world's best performing cryptocurrencies have first entered the market.
Pico Market $100K - $1M
There are generally around 500–700 cryptocurrency projects which fit into the Pico market at any given time. Just one level up from the lowest market capitalization level, Pico market capitalization is between $100,000 and $1 million dollars. Cryptocurrency projects within this cryptocurrency level are generally considered very high risk and susceptible to extreme volatility.
Femto Market <$100,000
This is the smallest level of cryptocurrency classification and typically too small for most investors to be concerned with. These are cryptocurrency projects which have less than $100,000 market capitalization and are often projects which have been abandoned. Generally, projects found within this level are considered extremely high risk and considered by the market to be sh*t (or abandoned) coins.
Categorization by market capitalization is one method to better understand the makeup of the cryptocurrency market. These levels also help to classify and identify projects with the potential and trajectory for growth.