![]() However, there is some debate about whether market capitalization can be used for all crypto projects. The market cap also reflects the price of both tokens at around $19k for BTC and $1.3k for ETH. Source: CoinmarketcapĬurrently, Bitcoin and Ethereum are the two crypto projects with the largest market caps of $370 billion and $164 billion US dollars. So, market capitalization is the price at which a company can be fully purchased. In equities, the market capitalization of a company is calculated by multiplying the market price of shares by the total number of shares outstanding. The calculation of market capitalization in cryptocurrencies is different from the market capitalization in the equities market. In general, the higher the market capitalization of a cryptocurrency, the more dominant it is in the market. Market capitalization is used as an indicator of the dominance and popularity of a crypto asset. It calculates the number of tokens currently in circulation and the price of each token (the price of tokens X number of tokens in circulation). Using Market Cap To Determine Crypto Investment StrategyĬrypto market cap is a measure to see a crypto project’s value and valuation.Difference between Fully Diluted Value and Market Capitalization.This strategy utilizes the characteristics of assets in each market cap category to balance potential profit and risk □ Various investors make use of market cap classification to create investment strategies in crypto.️□️ The crypto market cap is divided into several classifications, namely low-cap, mid-cap, and large-cap which are divided based on the number of each crypto project.In general, the higher the market capitalization of a cryptocurrency, the more dominant the asset is in the market. ![]()
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