The next time Bitcoin will half is in 2021 and we should see the value increase further as the creation of new coins becomes harder and less new coins enter the market. Altcoin market cap is an important measure against Bitcoin for industry adoption. 24 hr Change in %: 6.29%. The liquidity to market cap ratio is often 1:10 on most coins. Other indicators such as the OBV and MFI indicators can give us context for the relation between volume and price. 1712177.3141225362 DeFi Market Cap 7822936.756308857 ETH Market Cap 21.9% DeFi:ETH Ratio 110570.8601394286 24H Trading Volume 4.0% Defi Dominance (vs. Trade volume rankings for all cryptocurrencies in the last month. Mid-cap ($2 billion to $10 billion). What is CME gap? Heres a look at some of the metrics to look at regarding cryptocurrencies: This is a component of Market Cap, but has its own implications. In traditional markets I see this as being helpful and relatively straight-forward. DISCLAIMER:CryptoVantage.com does not offer any sort of investment advice. Expect a more intuitive alignment between liquidity and market cap when the market matures. It is found by multiplying the number of shares outstanding by the price per share. The MFI indicator is used in reversal trading to identify support and resistance levels. Tezos, for example, does not trade on any of the eight largest exchanges, And there are some who argue that market cap, while not entirely meaningless, is a, less useful indicator than it might first appear, Concentration of Ownership And An Immature Market. As you can see just like each Fiat Currency (USD, EUR) the value of each crypto currency also varies. For example, if Bitcoin was to have $100 million in trading volume, and its current price was $10,000 USD, that means about 10,000 Bitcoins are being actively traded. Circulating Supply: 16,830,812 This causes the trade volume to explode above normal levels. A greater volume of cryptocurrency being traded leads to fairer cryptocurrency prices and reduces price distortion. and our Web73 likes, 5 comments - Blocklink Media (@blocklink.media) on Instagram: "Monero and Bitcoin are cryptocurrencies, but the two have several key differences. The Bitcoin dominance metric shows how much of the total cryptocurrency market cap is represented by Bitcoin. Coin Guides Copyright 2023, All Rights Reserved. The leading community for cryptocurrency news, discussion, and analysis. Of course, that level of centralization is evident in plenty of other cryptos: Litecoins top 10 wallets hold 8.8% of all LTC, Dash is at 6.5%, and newer entrants to the market often have even more lopsided ownership Groestlcoin, for example, may have 62,000 wallets, but the top 10 own 42% of the tokens. Also, as Bitcoins are rewarded in blocks and those rewards are halved every 4 years, the value of coins could potentially increase around these time periods. At the time of writing, for example, tether USDT has had the most volume traded in US dollar terms over a 24-hour period, followed by bitcoin, ether, litecoin, bitcoin cash (the Roger Ver version), and EOS. Powered by Help Scout. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. This list of coins are ranked based on trading volume in the last 24 hours and are dynamically updated. Its intuitive to imagine that the larger a coins market cap, the more volume traded in any given period of time. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. Coin market caps do not reflect equity in the company, because they are coins, not shares, meaning they hold no legal attachment to the company, and so are more like currencies. One of the main problems with cryptocurrency investing is that finding a broker/trader is hard and most so-called pundits are simply posers looking to swindle newbies to the sector. I would like to subscribe to CoinGecko's daily newsletter. If the indicator hits the upper boundaries, we can expect a correction. Consider these two companies with very different stock prices yet somewhat similar market caps: Company 1: Stock price: $50 Outstanding shares: 50 million According to Bloomberg. In the crypto industry, a project that receives good news such as a new partnership or an exchange listing will often experience a volume spike. Now, although this is illegal in other markets and known as price manipulation, in the cryptocurrency markets it is actually becoming a much more common practice. Volume affects crypto prices due to liquidity. In this regard, the metrics driving the measure of market cap are also occasionally questionable (although CMC did confirm to Crypto Briefing that they are under review). As for Crypto.com Chain the market cap is currently listed by CMC as $427M. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Cryptocurrency, like other markets including the stock and forex markets, are investment vehicles that should be invested in only once you have an education and understanding of how they work. Additionally, market variables like regulations or accountability should also be taken into account. Yes. Generally speaking, the more volume, the better for a cryptocurrency, as that means it will be easy to buy and easy to sell. Lower altcoin market cap also implies less activity on their respective platforms and applications. This has important implications for attracting business, credit, and also operations. Another major issue is that while market cap can give you a general idea of the current value of a Bitcoin, it can easily be manipulated by a trick called Wash Trading. For example, in the case of Bitcoin, Bitcoin has a circulating supply of 16.4 million coins as of February 2018. If a new crypto launches and is listed on an exchange such as Phemex, it receives exposure from a new audience and that leads to a spike in trade activity & volume. Bitcoin has the biggest market cap at ~$132b ($320b at its peak), making it the same Market Cap as public companies like Visa, Johnson & Johnson, and IBM. Market caps can be manipulated by manipulating the price of the coin. WebCryptocurrency Prices, Charts, Daily Trends, Market Cap, and Highlights | Coinbase An error occurred It looks like we encountered a problem. Circulating supply means the coins that are actually mined or distributed and available for trading. The formula is the same, but that is the commonality. Live Marketcap Prices The Price of a Crypto Currency is the amount of Fiat Money that youll need to buy a single coin or crypto token. Global) 23.3% Lido Staked Ether DeFi Thats the market cap. High volume does often indicate more market interest in a coin and its potential appreciation in value, but it can also mark the beginning (or a peak) of a bear market as more people sell off in anticipation of prices going down. We compare Uniswap's V3 Pools and Trader Joe's Liquidty Book Model and look into the benefits both have delivered to DeFi. Generally, the higher the trading volume, the higher the price volatility. We calculate Bitcoin dominance by dividing the total cryptocurrency market cap with the market cap of Bitcoin. What Does Market Capitalization Mean in Crypto? As mentioned above, lower prices can also make it more prone to manipulation, but this also relies on low active trading volume. Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. 24 hour coin volume is the second most important factor to consider when you are trading alt coins. Altcoin market cap is the same idea as Bitcoin, except for altcoins. Though many people have made considerable capital gains in the marketplace, others have also lost capital. Still need help? Consider Bitcoin price now which is $11,887 and its market cap is We do not give personalized investment advice or other financial advice. In terms of total supply, Bitcoin has a maximum supply of 21 million coins.