Thursday, June 23, 2022

How To Calculate Market Cap Crypto

Crypto Price Prediction Calculator Crypto Scenario

Crypto 101 – How To Calculate Market Cap – You MUST KNOW THIS!
  • ing also allows the creation of new coins into the existing circulating supply. How much Ethereum can I
  • The market cap of Bitcoin has surpassed that of the 3 biggest banks in the world combined. it has also surpassed that of Visa and Mastercard
  • With a market cap of $1.07 trillion, Bitcoin now accounts for 9.85% of Gold’s $10.9 trillion. The cryptocurrency’s market cap alongside its value surged from 2020 Q4, with the asset hitting an all-time high of $57,800 on March 12, 2021
  • Examples Of Market Capitalization Formula

    Lets see some simple to advanced examples of Market cap formula to understand it better.

    Example #1

    A Company ABC has a total of 20,000,000 shares outstanding and lets us suppose the current share price is $ 12.

    Based on the above-given information and the formula of Market Cap, we will be able to calculate that ABC;Companys market capitalization.

      We must also remember that not all shares traded in an open market. The shares which are available in the open market are called float.

      Example #2

      Lets see an example of Kirloskar Oil Engines Limited for the calculation of the market cap.

      #1 First, we will find out the current stock price of the company from the Money control site.

      So we see the current price is 179.00 as of date 29th Jan19.

      • Current Price=179.00

      #2 Secondly, we need to know the number of shares that are selling on the stock market. We can get that from the balance sheet of the company from the Money control site.

      Now we will find out the total outstanding shares of Kirloskar Oil Engines Limited. If the company has issued only equity shares, then we can calculate outstanding shares by simply dividing share capital by its face value.

      The share capital is Rs 28.92 Cr, as in the fig below as of March18.

      The face value is Rs 2.

      Therefore we can calculate outstanding shares as

      • Outstanding shares = 28.92/2
      • = 14.46

      Therefore, from the above, we have gathered the following information for the calculation of Market Cap.

        Example #3

        • Current Price = Rs. 275.95

          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 .Max Supply is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency.

          You May Like: How Much Is It To Buy One Bitcoin

          Can You Compare Cryptocurrencies By Market Cap

        • Large-cap, or big-cap, companies typically have a market capitalization of $10 billion or more. These large companies have usually been around for a long time, and they are major players in well.
        • Although cryptos are gaining more acceptance as a currency for purchasing goods, dogecoin doesn’t have much mainstream real-world use. It has a few niche markets, including using dogecoin to tip.
        • Complete cryptocurrency market coverage with real-time coin prices, charts and crypto market cap featuring over 3832 coins on more than 160 exchanges. Complete Information on Cryptocurrency markets with Live Mining calculations, Coin price Market Cap, chart
        • Total Capitalization and Volume, USD. The chart below shows the historical data of global capitalization and 24h volume. The total cap parameter is calculated by collectively summarizing the capitalizations of all cryptocurrencies in USD
        • There are 1900+ cryptocurrencies on the market today. It’s hard to keep track of all of them! On this page, you will find all cryptocurrencies with price graphs updated in real time.It’s easy to compare market capitalization, volume, supply and more between cryptocurrencies.Do you want to see prices in dollar , euro , pounds or any other currency
        • ing them or purchasing them
        • Watch the heatmap of cryptocurrency prices, market capitalizations, and volumes on COIN360. Add our widget to track the price of BTC, ETH, XRP, LTC, BCH, EOS, BNB
        • How To Use A Crypto Weighted Market Cap Strategy

          How To Calculate Crypto Market Cap : Market Cap Calculator ...

          A weighted market cap strategy can help investors even if they are only investing in Bitcoin and Ethereum, says Jeremy Schneider, the personal finance expert behind Personal Finance Club told us recently.;

          A weighted market cap strategy means you put a proportional investment into each asset based on market cap. So if you take the total market capitalizations of both Bitcoin and Ethereum, then divide out the percentages each individual crypto holds in that total, youd end up with about 71% Bitcoin and 29% Ethereum.;

          This approach can help you determine how to invest $100 in the two biggest cryptocurrencies: Youd invest about $71 in Bitcoin and $29 in Ethereum.

          While the experts say you shouldnt bother with other altcoins , the same philosophy can in theory be used for whatever you wish to include into your portfolio. Just allocate how much of a total investment amount you wish to put into each coin based on its proportional market capitalization. At the very least, this ensures you are putting much smaller amounts in other cryptos, and larger amounts in the relatively safer Bitcoin and Ethereum.

          Also Check: What Crypto Exchanges Allow Shorting

          Learn: Cryptocurrency Market Cap The Ultimate Investor’s

          The company’s earnings for June occurred Cryptocurrency with low market cap. to be 28 percent lower than in May. Blockchaink2 began trading on the TSX-V on May 31,shortly after its change of business transaction. See our free report to get started Give me my free report!

          Weve written an entire guide on circulating supply, but put simply, this is the current amount of technically available coins for a given cryptocurrency. In the below image, we compare the current top 3 coins ranked by market cap.

          How To Calculate The Market Cap Of Any Cryptocurrency

          Crypto market capitalization = supply of crypto assets in circulation x the value of an individual unit.

          Lets try to calculate the market cap of Litecoin, a popular alternative to Bitcoin. At the time of writing the blog, one Litecoin costs $201.5. It is believed that there are 66,643,162 Litecoins currently in circulation. Therefore, the market cap of Litecoin would be the cost of a single Litecoin multiplied by the total number of Litecoins in circulation.

          When multiplying these numbers, we get the total figure of Litecoin market cap: $13,428,862,695.

          This number is equal to the total market value of the cryptocurrency network. When the market cap of one cryptocurrency goes higher, we can understand the network is on the path to success. For instance, during the past two years, the market cap of Bitcoin saw a rise from $68+ billion to $1+ trillion.

          Also Check: How To Launch Crypto Coin

          Stock Market Cap Vs Cryptocurrency Market Cap

          Image Credit:

          The term market capitalization originally comes from the stock market. To understand how differently market cap works for stocks and crypto, you need to have a basic understanding of how stocks work. Lets give you a simple overview.

          Owning stock in a company will give you a share of its ownership. Ownership broadly means two things:

          • Having the right to a portion of the companys future income distributed in the form of dividends.
          • Receive a proportionate amount of proceeds in case the company is sold

          The total value of all the shares is the market cap of the company. The companys market cap is an estimate of its current ability to produce revenue and its potential for growth. A significant percentage of a companys stock is held by the founders and other big shareholders.

          Now, in the case of cryptocurrencies, a large portion of the tokens is held by the company behind the project and by whales who just eat up the tokens and keep them dormant in their wallets.

          NOTE: Whales are rich investors who use their financial clout to buy huge amounts of a particular cryptocurrency.

          Ok, so how are these two approaches different?

          How To Calculate Cryptocurrency Market Cap

          What is a Crypto Market Cap?

          To calculate market cap you need to know the circulating supply of coin/token and its current Fiat value. In the case of Bitcoin its circulating supply is 17,231,612 BTC and its current value in USD is $6,654.91.

          17,231,612 BTC * $6,654.91 = $114,674,827,014.92 is the market cap of Bitcoin.

          You can use the same equation to calculate the market cap in Euro.

          17,231,612 BTC * 5748 = 99,047,305,776 is the market cap of Bitcoin in Euros.

          For more Bitcoin rates you can use this Bitcoin calculator.

          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.

          = Circulating Supply * Price


        • If there are 1 million coins in circulation and if its current price per coin is $1 then its total market cap is $1,000,000.
        • If the same coins value remains stable at $1 and if the circulating supply increases to 2 million then its total market cap is $2,000,000.
        • References:

          Also Check: Can You Use Bitcoin To Buy Things

          Is Market Cap The Best Way To Measure The Popularity Of A Cryptocurrency

          Even though the market cap of a project is still seen as the most important indicator of relevancy, the concept behind this is often subject to criticism. The reason is that the market cap of a cryptocurrency more or less reflects the popularity of a coin over a longer term.

          Large-cap cryptocurrencies are generally considered to be safe crypto investments. These are companies with a market cap of more than $10 billion. Investing in coins with large market capitalisation is usually a conservative strategy. These coins are likely to be less volatile than other cryptocurrencies but still more volatile than traditional assets like stocks.

          Mid-cap cryptos are more volatile but also have a lot more growth potential than large-cap cryptocurrencies.

          Small-cap cryptocurrencies are often extremely volatile and considered a highly risky investment, albeit sometimes with a lot of potential growth. However, be aware that they may also crash, literally from one minute to the next.

          As always with cryptocurrencies, we recommend to do thorough research before investing and consider all vital factors involved. For instance, market cap as a metric doesn√Ęt say much about actual trading volumes over the last couple of hours. Therefore it makes sense to also check Coinmarketcap for the 24-hour trading volume that a cryptocurrency has on different exchanges over a reasonable period and other essential criteria before investing.

          Are you ready to buy cryptocurrencies?

          Should I Look At Current Price Or Market Cap

          Theres a tendency to look at coins prices and associate a value to it purely based on its current price. For instance, whenever we see a coin that is priced at $0.10 or $0.05, we immediately associate that coin as being cheap and would opine that theres a high possibility that it is going to double, triple or even increase its value by a factor of 10. However, this is a major mistake since there is another equally important factor to consider when assessing the value of a coin: Circulating Supply. Lets look at a comparison of Litecoin and Ripple to understand this confusion:

          As you can see, Ripple is priced at 53 cents, which is a fraction of Litecoins price of $96. Anyone looking at both coins just by their pricewould misinterpret Ripple as the coin which has a better shot of multiplying its value much higher than Litecoin can, since it looks to be much cheaper. In their minds, its much easier for Ripple to double in value to $1+ than Litecoin to double. However, the reality is that theres a much higher probability of Litecoin increasing in value far more than Ripple. This is because the circulating supply of Litecoin is only 57 million, far lower than Ripples current supply of 39 billion! This puts Litecoin at a lower market cap of $5 million compared to Ripples $20 million. In order to reach Ripples market cap, Litecoin must be priced at 4 times it current value, which is approximately $400.

          Don’t Miss: What Crypto Currencies To Invest In

          How Do I Calculate Market Cap

          The computation of market capitalization is straightforward. The golden formula is:

          At the time of writing, a single Bitcoin is priced at USD $6,725.18 and theres a total of 17,106,787 Bitcoin in existent at the moment, thereby giving a market cap of over $115 million. Since Bitcoin if the founding father of cryptocurrencies, it is currently the largest coin with a dominance of close to 40%. This means that Bitcoins value makes up about 40% of the entire cryptocurrency market.

          Lets look at the 2 components further to have a deeper understanding:

          1. Market Price

          Market price refers to the price of the cryptocurrency according to current market rates. Simply put, it is the price where buyers and sellers agree on in the open market at a particular time. It is important to understand that the price of a cryptocurrency will vary across different exchanges, different currency pairs and different countries.

          2. Circulating Supply

          Circulating supply refers to the current number of coins in circulation globally. This is not to be confused with Total Supply, which is a completely different thing. Heres a screengrab from CoinMarketCap to understand the difference:

          How To Use Market Cap Volume Supply And Circulating Supply To Analyze A Cryptocurrency

          Crypto Market Capitalization Historical Data : How to find ...

          If you want to know how to analyze and evaluate a cryptocurrency based on these factors, you likely are looking to get started investing in the sector. Here is a quick run of what you need to know:

          To start with, though these are great factors to use in developing an investment strategy, they should definitely not be the only ones used when choosing what is the best cryptocurrency to invest in. However, they are a good start and we will attempt to cover them and a few other keys to look for.

          The market cap of a coin is the total value of all coins in circulation and is one metric used to determine value. The general way the market cap is calculated is the last traded price, or the average traded price of a coin, multiplied by its total circulating coin supply. For example, in the case of Bitcoin, when a Bitcoin is traded at $10,000, we multiply that by its total circulating supply, 16.4 million coins, to generate an approximate market cap of $164 billion USD. This doesnt, however, take into consideration on-chain trades or direct person-to-person transactions.

          On sites like CoinMarketCap, the average price is determined by the average price of multiple exchanges or marketplaces where trading is taking place. Another major issue is that while market cap can give you a general idea of the current value of a Bitcoin, it can easily be manipulated by a trick called Wash Trading.


          Total Supply Vs. Circulating Supply

          Other Factors

          Getting the Help of a Professional

          Read Also: How Do I Start Mining Bitcoin

          Why Do Market Caps Matter

          Price is only one of the ways to gauge a digital currencys value. Market cap gives investors a more complete story, which helps them compare their options better. It helps them determine whether a crypto is safe to buy, its potential for growth, and more.

          Investing in a crypto without considering its market cap is risky. Depending on the cap, the venture can lead to impressive gains or dramatic losses.

          Cryptocurrency With Low Market Cap

          Nevertheless, there are a plethora of decentralized projects in the market which aim to provide solutions for various different Hitesh Malviya.

          The lower a project’s market cap, the more risky it likely is. Lowest Market Cap Cryptocurrency Buying Bitcoin or Ethereum won’t have as much chance of multiplying your cryptocurrency portfolio to x gains.

          Also Check: How To Predict Crypto Charts

          Cryptocurrency Prices Charts And Market Capitalizations

          In this tutorial, you will learn how to get blockchain data from the CryptoCompare API using Python. The dataset is powered by our partner, Into The Block an intelligence company that leverages machine learning and advanced statistics to extract intelligent signals for crypto-assets. Read the full documentation here Cryptocurrency Market categrizes the Global market by Offering , Process , Type, Application , and Geography. COVID-19 Impact on Cryptocurrency Industry Calculator; Big Movers; Screener; Crypto Marketcap: $ 1.4T. BTC dominance: 45%. USD. Daily crypto news & insights delivered to your inbox: Top 100 Cryptos by Market Cap Next 100 currencies. platforms. stablecoins. exchange tokens. dapps. web3. defi. Name Price 24hr 7 Day Trend Market cap Vol 24hr More. 1. Bitcoin $ 34,372-5.43% $ 631.2B $ 9.4B. As for Chain – the market cap is currently listed by CMC as $427M. That’s based on a fully-diluted extrapolation. The total supply is 100 billion tokens , of which just over 5 billion are circulating; so even though the volume is listed at a meager $976K over the last 24 hours, the token manages to crack the top 25 because it has a price of around $0.08 Bitcoin Cash joined the market of cryptocurrencies on August 1st, 2017, when the crypto started trading at a price of $240. Bitcoin Cash price was then driven by a highly positive sentiment that was bringing all major cryptos to new all-time high prices, with BCH reaching a high price of $3,785

          Crypto Market Cap And Dominance Charts Tradingvie

          How To Find Low Market Cap Crypto Gems (Cryptocurrency Gems 2021)
        • Ripple Profit Calculator is a tool to calculate how much Profit you would have made if you had invested in it. You can use it as Ripple ROI Calculator. Market Cap: $266
        • Compare cryptocurrencies based on their price, market capitalization and volume over 1 hour, 24 hours, 7 days, 30 days, 90 days, 1 year, and total time in market. Compare crypto performance and track crypto price changes and improvements over time
        • The cumulative market capitalization of cryptocurrencies grew around 300 percent in 2020, as the digital coins became an increasingly investment tool
        • Do not confuse the market cap of Bitcoin with its cost – these are different concepts, even though they are interconnected: a drop in capitalization leads to a decrease in cryptocurrency price, and, correspondingly, crypto price growth leads to an increase in capitalization
        • Read Also: Which Credit Card Allows You To Buy Crypto

          Popular news
          Related news