Market cap or in English, known as market capitalization or market value is an indicator that measure and record the crypto currency market.
This market value is also used to measure the dominance and popularity of a cryptocurrency. The higher its total market value for the currency, the higher its dominance in the market.
The closest example known to the public, Bitcoin (BTC) which is in the top position, won the chart with a current market value of $ 854 billion and has a dominance of 61.81%.
How is it calculated? Looks like:
Market value = price (multiply) of the supply cycle
You can check the current market value for yourself at CoinMarketCap and examine the popularity of every cryptocurrency in the world. At CoinMarketCap, all listed prices are calculated based on the average total price from different exchanges.
Remember, investors, it is very important for you to monitor the circulating supply (supply cycle) of a currency as it changes all the time and not just focus on the total supply.
In fact, the market value of a cryptocurrency can also be considered more or less a reflection of the popularity of a coin for a long time.
For example, a crypto currency that has a high market value is considered a safer investment. Investing in cryptocurrencies with high market value is a conservative strategy as the currency has high potential with less volatile features.
However, it is still volatile when compared to conventional assets such as stocks.
Meanwhile, cryptocurrencies that have a moderately high market value are more volatile but still have room to continue to grow compared to currencies that have a higher market value.
Cryptocurrencies with low market value are very volatile and are a high risk investment considering various important factors need to be taken into account.
For example, market value as a metric does not say much about the actual trading volume for the last few hours. Therefore, it is better for you to check the trading volume in 24 hours on CoinMarketCap for currencies listed on various exchanges before deciding to make an investment.
