COIN MARKET CAPITALIZATION, THE WAREHOUSE OF CRYPTOCURRENCIES.

COIN MARKET CAPITALIZATION, THE WAREHOUSE OF CRYPTOCURRENCIES.

October 25, 2021

For every good market, there should always be transparency, accountability and ease of entrance, hence, every participant on either side of the divide as a buyer or a seller should have the power and leverage of choice.

As it effectively practiced in the convectional market, so also it is on the crypto world, but the later comes with much more accuracy, transparency and much acceptable visibility.

What then is coin market capitalization?  According to time.com, cryptocurrency market capitalization is the total value of the coins that have been mined. Hence, this value is arrived at by multiplying the number of coins in circulation by their current market price.

There are parameters which make up the coin market capitalization, and we will take a critical perusal at each one of them.

CIRCULATING SUPPLY: this is the adequate adjustment of the number of coins that are circulating in the market which are also at the public disposal.

TOTAL SUPPLY: this is the aggregate volume of coins visible in the market excluding the already known burnt ones.

MAXIMUM SUPPLY: this is the most adequate adjustment of the total or aggregate amount of coins that will ever exist in the entire life time of a cryptocurrency.

The best apparatus to use in determining the market capitalization of any coin is the circulating supply, this is because it the circulating number of coins in the market at every point, thus, this is what the market recognizes, it is what the buyers and sellers are trading on and not on coins that are locked, reserved and available or accessible to the reach of the market consumption.

On the market capitalization of coins, one will see coins and tokens, but these are of slight differences as well.

While coins are cryptocurrencies that have separate or independent operations, tokens are also cryptocurrencies but their modus operandi are dependent on a cryptocurrency as a backbone to operationalize.

For a cryptocurrency to be listed on the coin market capitalization chart, it must meet up some criteria; it must have a functional website, it must be traded publicly and actively at least on one exchange with an appreciable volume, it must have a leverage cryptography for consensus algorithm, smart contracts, p-p functionality, it must also give users the window to view its market pairs.

In the coin market capitalization, markets without fees are exempted while aggregating the trading volume to avoid ‘bot’ or self-generated trades.

As at the time of putting up this article, the global cryptocurrency market capitalization is standing at Two Trillion, Six Hunded Billion Dollars($ 2.60T), hence, as at this same material time, there are Thirteen Thousand, Sixty Nine cryptocurrencies(13,069) tokens and coins inclusive, Four Hundred and Twenty-two exchanges were also seen.

The coin market capitalization chart also warehouses the DEFIs(Decentralized finance) NFTs(Non-fungible tokens) and price changing charts