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Title: Trading above market cap volume: possible?? Post by: akes2090 on February 22, 2018, 07:29:52 PM I am perusing the Coinmarketcap website right now, and find the following data for Tether (USDT):
Market cap = $2,229,867,202 Volume (24h) = $3,031,250,000 Perhaps I don't understand the mechanics behind the trading - but how is it possible that the 24hr volume exceeded the market cap?? Title: Re: Trading above market cap volume: possible?? Post by: dothebeats on February 22, 2018, 07:37:23 PM I am perusing the Coinmarketcap website right now, and find the following data for Tether (USDT): Market cap = $2,229,867,202 Volume (24h) = $3,031,250,000 Perhaps I don't understand the mechanics behind the trading - but how is it possible that the 24hr volume exceeded the market cap?? It is possible. Market cap simply means that it is the value of all existing USDT whereas volume means the amount of coins/money traded or swapped in X amount of time. Let's put it this way, TomatoCoin has a market capitalization of $2M, but the daily volume in Farm Exchanges produced a figure of $2.5M TomatoCoin exchanged. In this instance there were no new TomatoCoin added into existence but the circulating supply of TomatoCoin in the exchange has been traded back and forth for it to reach that figure. I bought 2 TomatoCoin @$4, and sold it @$5; I produced $9 worth of volume just by using 2 TomatoCoins. Title: Re: Trading above market cap volume: possible?? Post by: akes2090 on February 22, 2018, 07:47:59 PM Thanks for the clarity..it makes sense now.
But why is there so much of activity on the USDT front anyway ??? ??? Title: Re: Trading above market cap volume: possible?? Post by: lite on February 22, 2018, 08:09:46 PM Thanks for the clarity..it makes sense now. Because USDT has markets on biggest exchanges like binance, bittrex,bitfinex etc..(https://coinmarketcap.com/exchanges/volume/24-hour/) people use USDT because in a sense it's much better than USD, one don't have to deal with banks, it saves time and fees between transfers. But why is there so much of activity on the USDT front anyway ??? ??? Title: Re: Trading above market cap volume: possible?? Post by: Harlot on February 22, 2018, 08:16:46 PM Well a Volume is computed differently from a market cap.
Market Cap = Current Price * Total Circulating Supply Volume = Number of times traded * Price each time it was bought and sold So to keep it short if the asset is more than active during that day then we might see its volume greater than its market cap. Us most likely be bought and sold by traders during the day. Title: Re: Trading above market cap volume: possible?? Post by: bohr on February 23, 2018, 01:35:56 AM Thanks for the clarity..it makes sense now. Because USDT has markets on biggest exchanges like binance, bittrex,bitfinex etc..(https://coinmarketcap.com/exchanges/volume/24-hour/) people use USDT because in a sense it's much better than USD, one don't have to deal with banks, it saves time and fees between transfers. But why is there so much of activity on the USDT front anyway ??? ??? Title: Re: Trading above market cap volume: possible?? Post by: akes2090 on February 23, 2018, 06:49:35 AM Thanks for the clarity..it makes sense now. Because USDT has markets on biggest exchanges like binance, bittrex,bitfinex etc..(https://coinmarketcap.com/exchanges/volume/24-hour/) people use USDT because in a sense it's much better than USD, one don't have to deal with banks, it saves time and fees between transfers. But why is there so much of activity on the USDT front anyway ??? ??? Thanks. Very interesting indeed. USDT has sparked new interest in me now. In a similar light - what are your opinions about DGD (DigixDAO)? If I am correct - it is linked to gold which is a fairly stable commodity/safe haven. Apparently they are partnering with gold vendors where token holders can even redeem physical gold/bullion. |