In general, the higher the market cap of a cryptocurrency, the more dominant it is considered to be in the market. For this reason, market cap is often regarded as the single most important indicator for ranking cryptocurrencies.
What happens when a coin reaches its max supply?
Generally speaking, when the maximum supply is reached, there will be fewer coins available on the market. This is expected to create market scarcity, which may eventually lead to deflation conditions (or 0% inflation rates).
What happens when a market cap is reached?
Market cap does not influence share prices. It works the other way around. Market cap is arrived at by multiplying the share price by the number of shares outstanding. So when a stock’s price rises, so too does its market cap.
Can market cap increase crypto?
Even if there’s a small number of coins in global circulation for a given cryptocurrency, its market cap will go up if the price of each coin is high.
What does market cap mean for a coin?
Market Cap is a shortened term for Market Capitalization, which in cryptocurrency is calculated by multiplying the current coin price of a certain crypto market to its circulating supply.
What factors affect the market cap of a coin?
A coins supply is one of the most important factor that affects the market cap and it is the most misunderstood metric by many newbie’s. For example Litecoin’s (LTC) current market cap is $11,619,268,134 with a circulating supply of 55,488,387 LTC.
What affects the market cap of a cryptocurrency?
On the other hand there are also coins (ICO) that are locked by a individual or a company which then be released onto the market (eg: Ripple XRP). A coins supply is one of the most important factor that affects the market cap and it is the most misunderstood metric by many newbie’s.
What is market cap and how is it calculated?
In crypto, market cap is calculated by multiplying the total number of coins that have been mined by the price of a single coin at any given time. One way to think about market cap is as a rough gauge for how stable an asset is likely to be.
What is coin market cap and how to use it?
This data helps when you are mostly into trading and if you are wondering then Coin Market Cap fetches price data from these markets. Currently there are 200 + Exchanges listed on CoinMarketCap website. Among them Binance tops the list with a 24 hour trading volume of 1.2 Billion US Dollars.
