Understand and analyze changes in market capitalization of cryptography

The world of cryptocurrencies has been on a roller coaster since its creation. With the rise of Bitcoin, Ethereum and other altcoins, the landscape has become more and more complex, which makes it difficult for investors to give meaning to market trends. An essential aspect that affects the performance and value of these assets is their market capitalization (market capitalization).

The market capitalization refers to the total value of a cryptocurrency or a token, measured in terms of number of parts or tokens pending. It represents the combined value of all the different parts of the blockchain network, including supply, demand and transaction costs. In March 2023, the 10 best cryptocurrencies by market capitalization are:

• Bitcoin (BTC) – Cap Boursière: more than $ 430 billion

• Ethereum (ETH) – Boursière Cape: more than $ 230 billion

• Binance Coin (BNB) – Boursière Cape: About 90 billion dollars

• Cardano (ADA) – Bours -de -paplette: approximately 24 billion dollars

• TETHER (USDT) – Bours encharge: approximately $ 30 billion

• USDC – PAPEMENT: About 25 billion dollars

• Solana (soil) – Boursière cape: about 18 billion dollars

• Polkadot (dot) – Bours -de -paplette: approximately $ 14 billion

• Ripple (XRP) – Bours -de -paplette: approximately $ 10 billion

• DOGECOIN (DOGE) – Capil Brocket: About 5 billion dollars

In this article, we will immerse ourselves in the process of analyzing market capitalization changes in cryptocurrencies and providing information on how to do it effectively.

** Why analyze market capitalization changes?

Changes in market capitalization can have a significant impact on the value and performance of various cryptocurrencies. For example:

• supply and demand

  : Modifications of supply and demand can affect the price of an asset, whatever its inherent value.

• Adoption and use : The increase and increased use of a particular cryptocurrency can lead to an increase in market capitalization values.

• Innovation and updates : new features or updates in a cryptocurrency network can attract investors, resulting in an increase in supply and higher market capitalization.

How to analyze market capitalization changes

To effectively analyze market capitalization changes, consider the following steps:

• Determine the deadline : Decide a specific period of time for your analysis, such as daily, weekly or monthly.

• Choose relevant measures : Select key measures related to market capitalization, such as:

* Total food

* Maximum power supply

* Food in circulation

* Total tokens issued (if applicable)

• Identify influential cryptocurrencies : focus on cryptocurrencies with significant presence and liquidity on the market.

• Monitor news and events : Stay up to date with news, updates and relevant announcements that may have an impact on the market capitalization of the cryptocurrency.

Example: changes in market capitalization in Bitcoin

Let’s analyze a 30 -day period to illustrate how to apply these steps:

Suppose we monitor the Bitcoin market capitalization (BTC) in the last month. We decide to focus on a period of 30 days, and our chosen measures are:

• Total food

• Maximum power supply

We identify that Bitcoin increased its total offer by around 21 million in January to around 25 million at the end of February.

| Day | BTC price | Total food |

| — | — | — |

| January 1st | $ 31,100 | 21 million |

| February 28 | $ 31,200 | 23 million (increased by 4.8%) |

We calculate the Bitcoin market capitalization as follows:

• Total support: 25 million

• Maximum food: Suppose it remains unchanged at 21 million

Capitalization market = total offer / maximum offer ≈ 1,173 BTC

In the same time, Ethereum increased its total offer by around 75 million in January to around 85 million at the end of February.

| Day | ETH price | Total food |

| — | — | — |

| January 1st | $ 3,200 | 75 million |

| February 28 | $ 3,300 | 80 million (increased by 5.

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