Crypto Indicators

Capitalization

The USD sum value of all the coins that have been mined for a specific cryptocurrency. It’s computed as current supply * priceUSD and based on the daily close price.

Market capitalization can be considered a rough gauge for how stable a coin is likely to be - a larger market cap is more likely to be a more stable investment than one with a much smaller market cap. Moreover smaller cap coins are more susceptible to turbulent markets and can see huge gains or losses in such periods.

There are 3 classifications of crypto currencies by market capitalization:

  1. Large-cap: coins with a market capitalization > $10 billion. Investors consider these to be lower risk investment because they have a sustainable record of growth and higher liquidity
  2. Mid-cap: coins with a market capitalization between $1 billion and $10 billion. These coins are considered to have more untapped potential upside but also come with higher risk
  3. Small-cap: coins with a market capitalization of less than $1 billion. Such coins are most immune to dramatic price swings in turbulent markets.

A free-float market cap is the total value of the cryptocurrency, excluding units that are not trading (e.g. lost or locked). Similar to regular market cap, a locally high market cap shows healthy activity and that the overall value of the coin is close to its local highs. A locally low market cap shows the overall value of the coin is depressed.

Capitalization

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