Market cap meaning crypto

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Market cap is a primary measure of the total value. When altcoins have a high market cap, people might see them as more reliable and trustworthy. At the same time, when they have a low market cap they are seen as speculative, new, and less reliable cryptocurrencies.  What is a crypto market cap In Cryptocurrency Market Capitalization you can see the top crypto currencies. Price of the currency, its market capitalization, 24 hour trade volume, supply and change in %. Since adding this feature we came to know that most newbie’s found it difficult to understand the Cryptocurrency market. Few of our users suggested us to make a post explaining the crypto market and so here it is. Here we’ll try to explain what does market capitalization, circulating supply and volume mean in Crypto currency.

What does market cap mean crypto

Large-cap cryptos refer to the top 10 cryptos by market cap. Large cap cryptos often have a market cap of $10-15 billion and upwards, but these figures are increasing as more people get involved in crypto. It must be noted that Bitcoin and Ethereum are in a league of their own in terms of market cap and stability. They are both very well established compared to the rest of the large-caps, and most crypto investors have some stake in them. Is It Better to Have a Large Market Capitalization? A higher than normal fully diluted market cap means that there is a large amount of supply of the token scheduled to be released to the market, thereby providing a high selling or inflationary pressure to the token. It is preferable for tokens to have a hard cap or locked tokens to ensure that there are no sudden huge inflationary pressure from an influx of new coins.

How is the market cap of a cryptocurrency Measured?

Though the term “market cap” gets used a lot, the term is not helpful when considering the future of a coin. The biggest difference between market cap and fully diluted market cap is that a market cap does not give any indication on how the crypto token’s growth will affect its popularity. On the other hand, a fully diluted market cap presents an estimate of how popular a crypto has the potential to be, once all of the coins are released or mined. What Is Market Cap? Definition and Calculation The cryptocurrency market capitalisation has crashed below $1 trillion for the first time since January last year amid extreme market conditions.

What is market cap in cryptocurrency

Naturally, this doesn't mean traders should avoid small-cap currencies. Still, it's more a case that the lower the market capitalization, the more likely that the asset will undergo wild price fluctuations. Depending on how risk-averse an investor may be, a small-cap coin may be a blessing or a curse. Is the market cap of a crypto an accurate measure of its value? As the saying goes, pride goes before the fall. Prior to the crash, many media outlets lauded crypto’s record-breaking market cap. For instance, Cointelegraph ran the headline, “Crypto markets tag $3T combined market cap for first time,” and Fortune gushed about crypto’s good fortune: “Cryptocurrencies hit market cap of $3 trillion for the first time as Bitcoin and Ether reach record highs.”