To understand and analyze changes in encryption market capitalization
The cryptocurrency world has been on the roller coaster since its establishment. With the emergence of Bitcoin, Ethereum and others Altcoins, the landscape has become increasingly complex, making it difficult for investors to understand market trends. The critical aspect of the activities and value of these assets is the capitalization of their market (market capitalization).
Market capitalization refers to the total value of cryptocurrency or token measured according to its currencies or tokens. This reflects the total value of all parts of the Blockchain network, including the rates of supply, demand and operations. From 2023 March The 10 major market capitalization cryptocurrencies are:
- Bitcoin (BTC) – Market Cape: over $ 430 billion
- Ethereum (ETH) – Market Caut: Over $ 230 Billion
- Binance Coin (BNB) – Market Caut: about $ 90 billion
- Cardano (Ada) – Market Cape: about $ 24 billion
5th Binding (USDT) – Market CAUT: about $ 30 billion
- USDC – Market CAUT: approximately $ 25 billion
- Solana (Sol) – Market Cape: about $ 18 billion
- Polkadot (Dot) – Market Caut: about $ 14 billion
- Ripple (XRP) – Market Cape: about $ 10 billion
- Dogecoin (Doge) – Market Cape: about $ 5 billion
In this article, we will deepen the process of changes in the capitalization of the cryptocurrency market and provide information on how to do it effectively.
Why analyze the changes in the market cover?
Changes in market capitalization can have a major impact on the value and results of several cryptocurrencies. For example:
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- Innovation and updates : new features or updates of the cryptocurrency network can attract investors, resulting in higher supply and later larger market restrictions.
How to analyze market cover changes
To effectively analyze market capitalization changes, consider the following steps:
- Set the time space : Decide for a certain period of analysis as daily, weekly or month.
2.
* General supply
* Maximum supply
* Current supply
* Thrown at all (if applicable)
3.
4.
Example: Bitcoin changes in market capitalization
Let’s analyze the 30 -day period to show how to apply the following:
Suppose we have been watching Bitcoin market capitalization (BTC) in the last month. We decided to focus on the 30 -day period, and the metric of our choice is:
- General supply
- Maximum supply
We find that Bitcoin in January Increased by about 21 million. January Up to about $ 25 million. At the end of February.
| Day | BTC Price | General supply |
| — | — | — |
| January 1 | $ 31 100 | 21 million |
| 28 February. | $ 31,200 | 23 million (4.8%increased) |
We calculate the capitalization of Bitcoin market as follows:
- General supply: $ 25 million
- Maximum supply: Suppose it does not change – $ 21 million.
Market capitalization = total supply / maximum supply ≈ 1.173 BTC
During the same period, Ethereum increased its total supply of approximately 75 million in January to about 85 million in late February.
| Day | Price eth | General supply |
| — | — | — |
| January 1 | $ 3,200 | 75 million |
| 28 February. | $ 300 | 80 million (increased by 5.