Backing from well-known companies means more transparency and a more natural path for projects to establish themselves on the market. There are two ways to raise the market cap of a crypto project. The “bad” way exists because market cap is an inefficient indicator and prone to manipulation. We’re going to focus on positive (or “natural”) ways to raise a project’s market cap.

Investors calculate the value of a cryptocurrency by multiplying its circulating supply by its current price. Though stock and crypto investors use the same indicator, the calculation differs in some respects. The Crypto Market Cap Utility Converter helps you to quickly visualize what your portfolio would be worth if your token mooned to another coins market cap (or tanked!). For example if you owned 100 AVAX avalanche tokens, what would they be approximately worth if the market cap of Avalanche grew to the market cap of Ethereum. Simple input this data into the cryptocurrency market cap tool and it will output the estimated price of Avax. Trading and investing in digital assets is highly speculative and comes with many risks.

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Monthly trading volume for some of the more popular cryptocurrencies is similar to their respective market caps. This indicates stability and balanced interest from market participants. One last thing to bear in mind is that market cap is a reflection of the last price at which a cryptoasset traded. All previous trades were executed at different prices, and there is no guarantee that the last price will be the price at which the next trade executes. In fact, given the volatility of cryptocurrencies, price is unlikely to remain the same for very long. Market cap is calculated by multiplying the asset’s circulating supply with its current price.

Market capitalization is one of the most popular metrics in finance. It was first introduced in the stock market and has been adapted to the crypto world where it is used to value cryptocurrencies. The percent change in trading volume for this asset compared to 24 hours ago. Check the latest cryptocurrency prices against all global currencies. CoinGecko’s cryptocurrency converter is simple to use and exchange rates are updated frequently.

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For each cryptoasset listed on our homepage, Transparent Volume is located between Volume and Circulating Supply. In general, crypto market cap isn’t considered to be as accurate as stock market cap. Another reason is the fact that cryptocurrency comes with certain risks that don’t exist with stocks. To compensate, one must analyze market cap in a broader context. Cryptocurrency exchanges provide markets where cryptocurrencies are bought and sold 24/7. Depending on the exchange, cryptocurrencies can be traded against other cryptocurrencies (for example BTC/ETH) or against fiat currencies like USD or EUR (for example BTC/USD).

• Perhaps the most notable pitfall of the crypto market cap calculation is found in the mechanics of the cryptocurrency market.
• Many projects pay review sites for positive reviews and recommendations.
• The calculation gets trickier when an asset is traded against another asset.
• In fact, many researchers describe crypto market cap as a deceiving indicator that is used only because it is simple.
• There have also been several cases of projects using whitepapers copied from other projects without changing anything but the organization and token name.

Ethereum was designed to be a world computer for decentralized applications. The most important factor when selecting a cryptoasset project is the philosophy and stated goals of its founder or team. To find the total cryptocurrency market cap, visit Nomics.com, and look for the Global Market Cap card. It’s at the top of the page, right under the title Top Cryptocurrencies by Market Cap. Trading volume doesn’t grow on trees, but it is relatively easy for project owners to manipulate.

crypto market cap converter market cap is calculated the same way as stock market cap, by multiplying the circulating supply of an asset by its price in fiat currency (e.g. USD, EUR, JPY). The calculation gets trickier when an asset is traded against another asset. In a crypto pair – let’s say Ethereum/Bitcoin orETH/BTC– to get the price of ETH, we would first denominate BTC in fiat. You can find historical crypto market cap and crypto price data on CoinCodex, a comprehensive platform for crypto charts and prices.

To know the market cap of popular crypto currencies you can use websites like CoinMarketCap where they provide enough data about a coin or a token. However all the new coins, tokens and ICOs are not listed on these data websites. This tool is for users who are looking to estimate market cap of such crypto assets. For smaller alternative cryptocurrencies or altcoins, there can be noticeable price discrepancies across different exchanges. At CoinCodex, we weigh the price data by volume so that the most active markets have the biggest influence on the prices we’re displaying. Analysts have developed metrics to evaluate whether a project is being unreasonably hyped on social media.

We are a high-https://www.beaxy.com/, one-stop-solution market data provider for cryptocurrency markets. If you want to invest in cryptocurrency, you should first do your own research on the cryptocurrency market. There are multiple factors that could influence your decision, including how long you intend to hold cryptocurrency, your risk appetite, financial standing, etc. It’s worth noting that most cryptocurrency investors hold Bitcoin, even if they are also investing in other cryptocurrencies. The reason why most cryptocurrency investors hold some BTC is that Bitcoin enjoys the reputation of being the most secure, stable and decentralized cryptocurrency. In a pump-and-dump scheme, a market participant sends a high volume of buy orders to create the impression that there is interest in a project.

Exchange data aggregators tend to rank projects by market cap. The higher an asset’s market cap, the more prominently it will be featured on the site. Project owners take market cap seriously enough to spend time and money manipulating the circulating supply or price of their tokens. This is just one reason why crypto market cap is considered a misleading or unreliable indicator.

Crypto market cap calculation

Unlike traditional pump-and-dump schemes, in a cryptoasset pump-and-dump, the price may fall, but it doesn’t necessarily crash. Just to be sure that the price doesn’t crash, fraudsters may dump in waves. This results in a “bottom-fishing” situation where others wonder whether the price drop is merely temporary. All of this results in an artificial price increase that simultaneously drives up market cap.

crypto market cap converter stands for Initial Coin Offering and refers to a method of raising capital for cryptocurrency and blockchain-related projects. Typically, a project will create a token and present their idea in a whitepaper. The project will then offer the tokens for sale to raise the capital necessary for funding development. Even though there have been many successful ICOs to date, investors need to be very BTC careful if they are interested in purchasing tokens in an ICO. The crypto market cap calculator’s comparison tool is extremely useful for comparing your token’s market cap relative to another coin’s market cap. The crypto market cap calculator helps you discover what the price of your token would be at another coin’s market cap easily.

• Projects that hit roadmap milestones on time have a higher perceived value.
• A large number of coins are designed with continuously expanding protocols.
• To get a broader perspective, let’s take a look at the world’s money supply and the way it is diversified.
• Tokens represent participation in a network that may or may not generate value.
• At CoinCodex, we weigh the price data by volume so that the most active markets have the biggest influence on the prices we’re displaying.

Open the settings and click on one of the options to save your crypto calculator inputs within your browser’s local storage. When interacting with members of a crypto community, be sure to take everything with a grain of salt. Opinions may be biased and few community members will have the technical expertise to properly judge or communicate a project’s pros and cons. Above all, a project’s whitepaper should explain why it needs a token.

From there, the contagion spreads to exchanges and market data aggregators. The truth is that artificially inflating trading volume is profitable and easy. From a project owner’s point of view, inflating volume makes their project more appealing to investors. High trading volume is a sign of liquidity, which allows traders to enter and exit positions quickly. High volume signals that a market is healthy and worth investing in. One way to gauge a network’s number of users is its node count.