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The Best Way To MEASURE THE MARKET CAP OF CRYPTOCURRENCYRight now, it is best to know that crypto markets have got a $500 billion market cap, meaning it tops the meteoric bull run. And that number is too big. But what is market capital, why does it matter, and just how can it help evaluate a coin? We’ll break that down today.
With regards to traditional securities it’s the market capitalization that evaluates everything and it has an involvement in crypto. Security would be measured and checked by the use of market capitalisation. It usually contains multiplying the amount of outstanding stock shares by the current stock price. On the other hand, crypto is calculated by circulating supply of tokens multiplied by current value. As an example, a coin which has 100 tokens and yo trade it for $10, you multiply it and the result will be $1000 which is the market capitalisation. As for now there are $18 million bitcoins which leads to the cost of $9700. Bitcoin’s market capitalisation, therefore, is roughly $174.5 billion.
Traditionally, bonds and stocks have already been analyzed via financial metrics and ratios. To know the value of stocks, there are a lot of things to check like price-to-earnings ratio, earnings per share, the current ratio, earnings growth, and so forth. You may use market capitalizations since it gives steps concerning how to learn on evaluating cryptocurrency because crypto teams does not publish financial statements always. Bitcoin is sitting at around $174 billion. The top five on the list includes Ethereum at $23 billion, Litecoin $5.83 billion, Bitcoin Cash $5.42 billion and lastly is XPR $13.55 billion.