Coin Market cap is a known metric for typical securities, but it has a unique implications in Crypto. Market capitalization is a means to measure the value of a security. It usually made up of multiplying the amount of outstanding stock shares by the current stock price.
Coin Market in crypto is the circulation in supply of tokens multiplied by current price. For instant, if a coin has a 100 tokens outstanding and is trading for $10 a coin, it then has a market cap of $1000. There are up to 16.6 million bitcoin in existence and the price is up to $5600, that is roughly $94 billion
However, bonds and stocks have been analyzed thru financial metrics and ratios. Measures like price-to-earnings ratio, earnings per share, the current ratio, earnings growth, and so on are medium to examine stocks, crypto teams do not publish their financial statements. Here, Market CAP provides a quick and simple check on how a crypto currency is working and it’s value. Bitcoin is the top of all the coin, it sit at roughly $94 billion. Ethereum is the second biggest crypto currency at $32 billion. Ripple at $10 billion, Bitcoin cash at $5 billion, and Litecoin at $3 billion these are the top 5.
More on MARKET CAP
By checking on Market CAPs daily you can learn more about crypto. First, Bitcoin is the giant among others, with 55% of the total crypt market cap. It remains far and most valuable coin, three times valuable as Ethereum. The exist a huge gap between Bitcoin and Ethereum. Only 12 coins have a total market cap of over $1 billion. It’s not common for popular altcoins to have market caps of under $20 million. Most of Crypto market cap are tie up to bitcoin and a few other big names.
MARKET CAP ANALYSIS
Market cap that is high or low can actually reveal a coin that is vulnerable or volatile. Coin with small market cap hit more, when big news hits the market, when large buyers take positions, crypto markets are among the most volatile that the world has witness. Market cap is merely a number showing the amount of coin in circulation and their price, it cannot account for those in possession on the coins. As earlier mentioned, larger token holders may influence the price of a coin. If development team holds the large amount of coin, they take charge and control the direction of the coins while presenting the appearance of a coin with a healthy market cap.
Market cap is a quick way to boost coins value. A good market Cap will indicate a strong coin, but developers or big holders of coin can mislead. Endeavor to always weigh market Cap with some of the other metrics before making an investment.