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How Are Cryptocurrency Market Caps Determined

Coinmarketcap Faq

Coinmarketcap Faq

What is "Market Capitalization" and how is it calculated? Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply. How are the prices calculated for the various cryptocurrencies? Price is calculated by taking the volume weighted average of all prices reported at each market. Sources for the prices can be found on the markets section on each cryptocurrency page. For example, Bitcoin's markets. What is the difference between "Circulating Supply", "Total Supply", and "Max Supply"? Circulating Supply is the best approximation of the number of coins that are circulating in the market and in the general public's hands. Total Supply is the total amount of coins in existence right now (minus any coins that have been verifiably burned). Max Supply the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency. Why is the Circulating Supply used in determining the market capitalization instead of Total Supply? We've found that Circulating Supply is a much better metric for determining the market capitalization. Coins that are locked, reserved, or not able to be sold on the public market are coins that can't affect the price and thus should not be allowed to affect the market capitalization as well. The method of using the Circulating Supply is analogous to the method of using public float for determining the market capitalization of companies in traditional investing. What is the difference between a "Coin" and a "Token" on the site? A Coin is a cryptocurrency that can operate independently. A Token is a cryptocurrency that depends on another cryptocurrency as a platform to operate. Check out the crypto tokens listings to view a list of tok Continue reading >>

Comparing Bitcoin And Other Cryptocurrencies By 'market Cap' Can Be Very Misleading

Comparing Bitcoin And Other Cryptocurrencies By 'market Cap' Can Be Very Misleading

Comparing Bitcoin and Other Cryptocurrencies by 'Market Cap' Can Be Very Misleading I've been a full-time Bitcoin writer and researcher since early 2014. Opinions expressed by Forbes Contributors are their own. Although bitcoin was launched as the only cryptocurrency in the world back in 2009, there are now thousands of alternatives that can be traded on various online exchanges. Many cryptocurrency traders track the price of these digital assets on sites like CoinMarketCap.com, but the key metric that is most often used to compare these cryptocurrencies, market cap, can sometimes be misleading. Having said that, there are a few alternative metrics that can be used to compare the different digital assets found in the world today. While market cap is usually a useful metric for tracking the total valuation of a company, the same is not true in the world of cryptocurrencies. This is because there are often situations where the units included in the calculation for a coins market cap simply the number of coins multiplied by the current price in US dollars are not easily available for trade. For example, the long-forgotten Auroracoin, which was targeted towards citizens of Iceland, was said to have a market cap of over $1 billion back in early 2014, but the reality was that a large number of the coins were locked up and unavailable for trade because they had yet to be airdropped onto the Icelandic public. In reality, the Auroracoin market cap was closer to just over $10 million. Steem was another notorious example of an inflated cryptocurrency market cap. The market cap was reported as more than $400 million in July 2016, but this was due to a large amount of Steem being locked up as Steem Power, which is used as a sort of fuel to vote on the social media platform built ar Continue reading >>

These Cryptocurrencies Have Market Caps Greater Than $1b

These Cryptocurrencies Have Market Caps Greater Than $1b

These Cryptocurrencies Have Market Caps Greater Than $1B Cryptocurrencies are on a roll, hitting a total market capitalization of $494billion. Twenty-two of them now have a market cap of more than $1 billion. Bitcoin (BTC) is trading close to$17,000, up 1000% this year, and its market capitalization is hovering around $292billion. The primary cryptocurrencycommands 59.2% of the overall market. Almost 40% of Bitcoins trading volume by currency is in the Japanese Yen(JPY), followed by the U.S.Dollar(USD) at 34% Ethereum (ETH) is now trading around the $636mark.Its market cap is now at around $61.2billion. Interestingly, around 41% of trading volume is done in Bitcoin itself, with almost 32% in USDand 11% in South Korea's won (KRW). Bitcoin Cash (BCH) is currently placed thirdwith a market capitalization around$26billion and a price hovering around $1,550. About 53.3% of trading volume of Bitcoin Cash is supported by Bitcoin, followed by KRW,which counts for about 20% of the volume. Litecoin (LTC) has witnessed a surge within a short span of time. It recently crossed the crucial $300mark and is trading near the$328 levels. Its market cap has risen to around$17.8 billion. The trading volume of Litecoinisnow driven by Bitcoin (40.68%), USD(37.26%) and South Korea's won (9.41%). IOTA (IOT) is the fifth largest cryptocurrency, trading at just $4.64 but with a market cap of $12.9 billion. The trading volume of IOTA is made up of nearly 50%Bitcoin, followed by 40% USD. Ripple (XRP) is currently the sixthlargestcryptocurrency, with $11.2billion as market cap. Ripple is a decentralized solution for banks and financial institutions that is fast (4 seconds) and scalable (1,000 transactions per second). Ripple has been relatively stable during the highs and lows of the crypto world. Continue reading >>

Cryptoeconomics Is Hard: Marketcap

Cryptoeconomics Is Hard: Marketcap

Written in close collaboration with Alex Felix . On July 20th, 2016 the market capitalization of Steem briefly reached $386M and over subsequent weeks quietly retreated to under $150M. Many other cryptocurrencies followed a similar pattern at one time or another. But regardless of the speculative hype cycle that drives prices in either direction, the more fundamental question Id like to examine is the perceived connection between a cryptocurrencys market cap and its measure of a networks value. The term market capitalization originally comes from the stock market. To simplify the picture significantly, a stock gives its owner a share of ownership in some company. Ownership in this case has a very specific meaning. It refers on one hand to having the right to a portion of the companys future income distributed in the form of dividends. On the other hand, if the company is sold, the stockholder will receive a portion of the proceeds. Value of future income and growth X earned by the company can ideally be expressed as a stock price Y today. This would somehow account for various risks and unknowns, a factor that increases significantly as the time horizon extends into the future. The total value of all the shares of a companys stock, its market capitalization, is a proxy measure for the currently expected capacity of the company to produce both income and growth. In theory, market efficiency means that everyone will use some version of this approach to valuate a company, which in conjunction with high liquidity means that markets do not deviate too far from this picture. But what about cryptocurrency? When we multiply the price by supply and call it market capitalization, what have we achieved? What does this measure really mean for Bitcoin, Ether or Steem? The confusion Continue reading >>

Comparing Digital Currencies? Market Cap Doesnt Tell The Whole Story

Comparing Digital Currencies? Market Cap Doesnt Tell The Whole Story

Auroracoins current market cap is just over $1 million . Ripple s XRP token is another asset that has been accused of overvaluation due to the company owning the vast majority of all the XRP in existence . Many also see Ripple as a permissioned ledger rather than a digital cash system, so its unclear if it should be compared to the likes of bitcoin or even some of the altcoins. The latest example of an inflated market cap has come via Steem . Large amounts of Steem are locked up and unavailable for trade due to the fact that much of the new Steem is issued as Steem Power, which cannot be withdrawn and sold immediately. The market cap for Steem peaked at around $400 million in July, and now sits at roughly $40 million. In a blog post earlier this year, Civic CEO Vinny Lingham pointed out that lost coins should also play a role when calculating a digital currencys market cap. Indeed, this logic can also be applied to bitcoin, where more than one million coins could be inaccessible . While there are definitely issues with the ways in which digital currency market caps are calculated, the good news is that other data points are also worth mentioning. There are two big factors, said longtime bitcoin investor Trace Mayer on a recent episode of The Bitcoin Report . One is market cap; one is liquidity. How much daily volume is getting turned over? If you need to sell $50 million worth of ethers, can the market handle that in a single day? Mayer went on to point out that dumping a large amount of bitcoin may move the price by a couple of dollars, but that wouldnt be the case for any other digital currency. Just because you have a high market cap doesnt mean you have high liquidity, he said. Mayer also discussed forms of liquidity found outside of the traditional digital currenc Continue reading >>

Stop Talking About Bitcoins Market Cap

Stop Talking About Bitcoins Market Cap

Comparisons to real companies, currencies and countries are flawed measures for the cryptocurrency The virtual currency bitcoin continues surging to new highs as a frenzy of investors get in on the action. WSJ's Paul Vigna explains what you need to know, and how to invest should you want to join the mania. Photo: Alexander Hotz/The Wall Street Journal. Bitcoin is taking over the world. Its rapidly rising value is making it bigger than some major financial companies, some big currencies and many of the worlds countries. Or so the bitcoin cheerleaders say. Bitcoins market capitalization currently stands at around $278 billion, according to coinmarketcap.com. That puts it ahead of Citigroup Inc. and Visa Inc. Bitcoin enthusiasts say the digital currencys market cap has surpassed the gross domestic product of midsize countries such as Finland and Greece. Copyright 2017 Dow Jones & Company , Inc. All Rights Reserved.

  • Will Cryptocurrencies Increasing Market Cap Eventually Cure The Worlddebt?

    Will Cryptocurrencies Increasing Market Cap Eventually Cure The Worlddebt?

    Will Cryptocurrencies Increasing Market Cap Eventually Cure the WorldDebt? The current World Monetary supply is approximately $90.5 Trillion USD give or take. This is whats referred to as Broad Money. It takes into consideration all coins, banknotes, money market accounts, savings, checking and time deposits. Now $90.5 TRILLION with a T US Dollars. Thats an awful lot of money. HOWEVER NOT when compared with the World Debt! At OVER $215 Trillion USD with a big CAPITAL T this is OVER DOUBLE the World Monetary Supply. This takes into account the TOTAL DEBT thats been accumulated by ALL Households, Governments and Corporations combined. Roughly 1/3 or $70 TRILLION USD of this WORLD DEBT has occurred over the past 10 years. The $215 Trillion USD WORLD DEBT represents 325% of the Worlds GDP. World Stock Markets with the market capitalization off all of the Global stock markets combined is about $74 TRILLION DOLLARS. Just a bit more than the entire Planet Earths Debt. By comparison all WORLD REAL ESTATE is currently estimated at $217 TRILLION USD. If you add up the combined value globally of residential property, hotels, industrial and agricultural land, retail space, offices and other commercial real estate it OUTWEIGHS THE CURRENT WORLD DEBT. Now, we could look at using derivatives to pay down some of this rampant, growing, sizeable debt. The derivative markets consist of options, warrants, futures contracts, (including commodity futures), forward contracts, swaps, (including the now infamous credit default swaps of 2008 Global Financial Crisis), Collateralized Debt Obligations/CDOs and more. On the VERY LOW END the WORLD DERIVATIVE MARKET is estimated at $544 TRILLION USD On the VERY HIGH END the estimate is a staggering $1.2 QUADRILLION with a TREMENDOUSLY HUGE, TOTALLY U Continue reading >>

    Market Capitalization Meaning

    Market Capitalization Meaning

    Home Glossary Market capitalization meaning Market capitalization or market cap is the aggregate valuation of a company based on its current share price and the total number of outstanding shares (also referred to as issued shares, common stock authorized by the company, issued, purchased and held by investors). Market capitalization formula: market capitalization = closing price per share x number of outstanding shares Example: If a company has 5 million shares outstanding and the closing price per share is $20, the companys market capitalization is $100,000,000. If the price per share drops to $19, the companys market cap falls to $95,000,000. Market capitalization helps investors measure a companys value and performance and determine the returns and the risk in a companys shares. Typically, companies are classified as large-cap (market cap of $10 billion or more), mid-cap (market cap between $2 billion and $10 billion), small-cap (market cap between $300 million to $2 billion), and micro-cap (market cap between $50 million and $300 million). Nano-cap has also come into use, in reference to companies with a market cap lower than $50 million. Market cap is not necessarily what a company is really worth. The market cap formula doesnt include cash or debt, and almost every company on the stock market has either cash, debt or both. Thus, market cap is not a thorough estimate of a companys value, but rather a better measure of size than worth. Enterprise value (market cap cash + debt) is a better estimate of what a company is actually worth. In the cryptocurrency sector, market cap is used to determine the relative size of a digital currency or of all the digital currencies combined. The cryptocurrency market cap is calculated by multiplying the price by the circulating s Continue reading >>

    Eli5: Market Cap And How It Determines How High A Coins Price Can Possibly Go? : Cryptocurrency

    Eli5: Market Cap And How It Determines How High A Coins Price Can Possibly Go? : Cryptocurrency

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    Why It's A Bad Idea To Measure Cryptocurrencies By Their Market Caps

    Why It's A Bad Idea To Measure Cryptocurrencies By Their Market Caps

    A vertical stack of three evenly spaced horizontal lines. * Copyright 2018 Business Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our A cryptocurrency's market capitalisation isn't necessarily an accurate representation of its total value. Market capitalisation may not be an accurate way to describe the total value of a crypto coin. Julian Hosp co-founder of cryptocurrency TenX said the metric has some serious limitations. "If a cryptocurrency has a market cap of $1 billion, it doesn't mean that $1 billion has flown into that cryptocurrency," Hosp said. As the price of a cryptocurrency goes up or down, its total value is typically described with reference to its market capitalisation. In the case of a crypto such as Bitcoin, the market cap is calculated as follows: The total number of coins on issue, multiplied by their price. But according to Julian Hosp co-founder of cryptocurrency TenX the metric has some serious limitations in determining the actual value of a digital coin. In a commentary on the risks facing the crypto market for CNBC, Hosp explained his point as follows: "If a cryptocurrency has a market cap of $1 billion, it doesn't mean that $1 billion has flown into that cryptocurrency," Hosp said. "So, for a cryptocurrency to have a market cap of $1 billion, maybe only $50 million actually moved into the cryptocurrency." "Therefore, if that coin collapsed completely, its market cap would go from $1 billion to zero, but investors would have actually only lost $50 million." So a given coin's market capitalisation is therefore heavily dependent on the number of coins on issue, which appears to be at the discretion of the coin's creators when they launch an Initial Coin Offering (ICO). The ICO process differs some Continue reading >>

    Cryptocurrency Market Cap Retreats Below $400 Billion

    Cryptocurrency Market Cap Retreats Below $400 Billion

    Cryptocurrency Market Cap Retreats Below $400 Billion Join our community of 10 000 traders on Hacked.com for just $39 per month. Its another day in the red for the cryptocurrency markets, as 97 of the top 100 cryptocurrencies have posted 24-hour declines against the US dollar. The Bitcoin price headlined the retreat by declining to an 80-day low, and other top coins fared equally as poorly. Altogether, the cryptocurrency market cap declined by $52 billion to $363 billion, representing a single-day pullback of nearly 13 percent. The downturn reduced the Bitcoin price by another 12 percent, bringing the most prominent cryptocurrency to an 80-day low. At present, the Bitcoin price is valued at just $7,660, which translates into a $130 billion market cap. Nevertheless, as CCN reported this morning , the impending launch of stock brokerage app Robinhoods cryptocurrency trading platform could breathe new life into the markets, or at the very least speed its recovery. Fintech platforms such as Robinhood Crypto and Squares Cash App will likely prove crucial in the future, as an increasing number of banks and other financial institutions are banning their customers from using their credit cards to purchase cryptocurrencies. Some investors believed that the market downturn would present Ethereum with the opportunity to finally achieve the flippening by surpassing Bitcoins market cap and becoming the largest cryptocurrency. However, this has not proved to be the case, as the Ethereum price has largely tracked with Bitcoins decline. On Monday, the Ethereum price sunk below the $800 mark and was trading at $772 on Bitfinex at the time of writing. This represents a single-day decline of 13 percent and leaves Ethereum with a $75.8 billion market cap. On the whole, altcoins declined t Continue reading >>

    Cryptocurrency Market Capitalizations

    Cryptocurrency Market Capitalizations

    Volume Leaders Price Volume Leaders Volume Advances Trading Liquidity Market Overview Long Term Trends Today's Price Surprises Highs & Lows Forex Market Map Performance Leaders Commitment of Traders All Sectors Currencies Energies Financials Grains Indices Meats Metals Softs Van Meerten Stock Picks Chart of the Day Barchart Morning Call Market Data subject to terms of use and privacy policy . All Rights Reserved. User agreement applies. Stocks: 15 minute delay (Bats is real-time), ET. Volume reflects consolidated markets. Futures and Forex: 10 or 15 minute delay, CT. Market Data subject to terms of use and privacy policy . All Rights Reserved. User agreement applies. The Cryptocurrency Market Capitalizations page displays the current market cap rankings for major cryptocurrencies based on a currency you select at the top of the page. The page initially displays using "USD" as the crossrate to calculate against. The list of cryptocurrencies, along with data for the page, is updated and ranked every 15 minutes. Prices in the currency you choose are calculated based on the lastest data available for each crossrate. Continue reading >>

    $600 Billion: Cryptocurrency Market Cap Sets New Record

    $600 Billion: Cryptocurrency Market Cap Sets New Record

    $600 Billion: Cryptocurrency Market Cap Sets New Record Dec 18, 2017 at 18:50 UTC|UpdatedDec 18, 2017 at 18:57 UTC The total cryptocurrency market capitalizationrose above $600 billion for the first time today. Data from CoinMarketCap.com shows that the capitalization rose as high as $603.3 billion, crossing $600 billion around 11:30 UTC. After dipping below that roughly an hour later, it again climbed above that level twice in the following four hours. As of press time, the collective market capitalization has dropped back slightly, coming in atroughly $598.7 billion -a figure that represents more than double the market cap of $232 billion seen a month ago. Among the top-five cryptocurrencies, bitcoin cash has seen the most significant gains. The cryptocurrency, which forked away from the main bitcoin blockchain, is up roughly 22% in the past 24 hours, trading at $2,250 as of press time. Additional market data shows that the afternoon trading session between 12:00 UTC and 16:00 UTC saw bitcoin cash climb 16%. During that period, cryptocurrencies VeChain and Hshare rose the most, climbing by 31.88% and 28.15%, respectively. The top-50 cryptocurrencies that experienced declines during that period include siacoin, which fell by 10.12%, and startup Power Ledger's PWR token, the price of which dropped 8.64% during the afternoon session. The price of bitcoin, according to CoinDesk's Bitcoin Price Index, has fallen more than 3% since the start of the day's trading, and at press time was trading at$18,437.19. The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies a Continue reading >>

    Understanding Cryptocurrency Market Cap

    Understanding Cryptocurrency Market Cap

    On the heels of a meteoric bull run, the crypto markets now have a $170 billion market cap, an all-time high. Thats a big number. But what is market capitalization, why does it matter, and how can it help evaluate a coin? Well break that down today. UNDERSTANDING A CRYPTOCURRENCYS MARKET CAP On the heels of a meteoric bull run, the crypto markets now have a $170 billion market cap, an all-time high. Thats a big number. But what is market capitalization, why does it matter, and how can it help evaluate a coin? Well break that down today. Market capitalization is a well-known metric for traditional securities, but has unique implications in crypto. Market capitalization is a measure of the value of a security. It usually consists of multiplying the amount of outstanding stock shares by the current stock price. In crypto, its defined as the circulating supply of tokens multiplied by current price. If a coin has 100 tokens outstanding and is trading for $10 a coin, it has a market cap of $1000. There are around 16.6 million bitcoins in existence, and the price is around $5600 at time of writing. Bitcoins market cap, therefore, is roughly $94 billion. Traditionally, stocks and bonds have been analyzed via financial metrics and ratios. Measures like price-to-earnings ratio, earnings per share, the current ratio, earnings growth, and so on are used to examine stocks. However, crypto teams dont publish financial statements, what metrics that do exist are all the more important Market cap provides a quick and easy check on how valuable a cryptocurrency is. Bitcoin is sitting at roughly $94 billion. Ethereum is the second-biggest, at $32 billion. Ripple ($10 billion, Bitcoin Cash ($5 billion), and Litecoin ($3 billion) round out the top 5. You can learn a lot about crypto just b Continue reading >>

    Cryptocurrency Market Cap Surpasses $200 Billion

    Cryptocurrency Market Cap Surpasses $200 Billion

    Cryptocurrency Market Cap Surpasses $200 Billion By Nathan Reiff | Updated November 8, 2017 10:11 AM EST Hydropower: The Key to Bitcoin Mining in the Future? Thecryptocurrencymarket capitalization industry-wide reached $200 billion for the first time in history. This is a huge increase from the $40 billion market cap at the beginning of2017. The first weekend in November was a dramatic one for the cryptocurrency space. Altcoins that had been gaining in value suddenly lost much or all of the gains in the span of about 36 hours. Meanwhile, bitcoin saw its price climb to atmospheric new highs of more than $7,500 per coin on the news that bitcoin futures would be available before the end of 2017. A recent article by The Merkle suggests that despite the swift gains in the overall market cap for the cryptocurrency industry, the market has yet to shed any of its characteristic volatility. On the contrary, there have been greater levels of volatility during the weeks leading up to the record-setting market cap level as compared with the rest of 2017. Currently, however, the situation seems to primarily affect altcoins, which have seen a major downturn. In spite of their lost value, those coins are nonetheless a portion of the market cap that has climbed so high. Across the digital currency space, it may come as no surprise to investors that bitcoin remains the fixture of the market cap . All bitcoins in circulation are worth more than $125 billion at this point. Bitcoin has been the leading digital currency in terms of market capitalization since the beginning of the trend, but that figure is still impressive, considering the total market cap for the cryptocurrency space was less than one-third of that just months ago. Accompanying the rise in bitcoin's price is an increase in Continue reading >>

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