First and foremost, it is important for you to know what the coin market capitalization is and how it works in order to understand the current article in the easiest way possible. To begin, the coin market capitalization is the best way to calculate the size of a specific cryptocurrency. This important value has to be determined by multiplying the Price by the Circulating Supply. After multiplying them both, you will see the current coin market capitalization of any digital currency.
In the case of the Price, if you want to determine this value, you are required to take the volume weighted average of each price reported at coin markets. In order to look for the prices, you have to go to the markets menu on all digital currency websites. In the case of Bitcoins, you have to look for the Bitcoin´s market if you need to know its current price levels. In the present text, you are going to know some interesting facts about the coin market capitalization.
Differences between Circulating Supply, Total Supply, and Max Supply
Firstly, Circulating Supply can be defined as the most effective way to determine the number of coins that circulate in the coin market and in users´ hands. In the case of Total Supply, it can be defined as the whole number of coins that circulate in a specific moment. In the case of Max Supply, it is the most reliable approximation of the number of coins that will be created in the lifetime of a particular digital currency.
Circulating Supply is one of the best metrics to determinate the coin market capitalization in a specific moment. It has the ability to determinate which coins are being locked, reserved, or cannot be sold on the coin market. These coins have not the ability to influence in current price levels and should not be allowed to affect them. If you want to know how to use this method, it is very similar to the method of using public float with the main goal of determining the market cap of companies.
Taking into account the abovementioned, Circulating Supply is one ofthe most important elements that have to be considered before investing in a specific digital currency. For this reason, you are required to check the rate of increase over time in order to avoid future problems. Keep in mind that the rate of release of each cryptocurrency is really fast in the early years, but it tends to diminish with the passing of time.
What is CoinMarketCap?
It is possible to define CoinMarketCap as a web portal that was created with the main goal of tracking most of digital currencies. In addition to the ability to tack most of cryptocurrencies, it also let users check current price levels in dollars and Bitcoin for every digital currency. CoinMarketCap also let them check that number of coins that are circulating right now, the change in value over the last day and the volume being traded in the same period of time.
On the other side, the information provided by this famous website is updated frequently. Apart from this, it always receives feeds from many other cryptocurrency webpages and from the crypto coins entrepreneurs. In consequence, the information provided by CoinMatketCap about price levels and news is correct most of the time. Even if you are interested in seeing the movement of the price of a particular digital currency in the coin market graph, you can do it without any inconvenience.
Apart from this, you have the option of checking the last week movement, that is to say, you have the ability to verify if a digital currency is getting more or less valuable in real-time.