What does it mean?

[sann111]

Hey guys,

Can you guys explain what Market Cap, Circulating supply, and Volume means? I am trying to understand the chart.

[HeRetiK]

Circulating supply is the amount of coins / tokens that have so far been issued for the respective cryptocurrency.


Market Capitalization is the circulating supply times the value per token.

Eg.: Circulating supply of 16,770,625 BTC * price of USD 14,656.20 = market cap of USD 245,793,634,125.


Volume is the amount of cryptocurrency that has been actively traded within a given timeframe, ie. bought / sold within for example the last 24 hours.

[HabBear]

Regarding market capitalization, i’ve noticed a lot of members here misappropriate how market capitalization information should be used when making buying decisions. It shouldnt be a factor at all in buying decisions. Market capitalization isn’t a driver of value it’s a measure of size of the market for a coin/token. Don’t use this metric to decide which token to buy and when.

[sann111]

Regarding market capitalization, i’ve noticed a lot of members here misappropriate how market capitalization information should be used when making buying decisions. It shouldnt be a factor at all in buying decisions. Market capitalization isn’t a driver of value it’s a measure of size of the market for a coin/token. Don’t use this metric to decide which token to buy and when.

Then what should I look out for?

[Black_Mamba]

Regarding market capitalization, i’ve noticed a lot of members here misappropriate how market capitalization information should be used when making buying decisions. It shouldnt be a factor at all in buying decisions. Market capitalization isn’t a driver of value it’s a measure of size of the market for a coin/token. Don’t use this metric to decide which token to buy and when.

Market Cap is an indicator of how much the coin as a whole is worth. If the market cap of Apple is 500B and the market cap of Bitcoin is 250B it gives you an estimation of how much the whole Bitcoin is worth in comparison to an existing company or other companies in the market.

Any of you recommendations of good sites that shows Bitcoin and other cryptocurrencies market cap and financial data? I use coinmarketcap but im not sure the data is accurate there.

[LazaroJT]

Volume is how much in total value has been traded in a 24hour period. So right now XBY has a volume of 2,858,870 USD. That means that 2,858,870 in value has been bought and sold. Depending on where your looking that could be all the exchanges it is on or just the one you are currently on. Volume is important as it show how active the coin is. If volume is low it means not many people are interested in buying or selling it. If it is high it could mean that the coin is very active so it will be easy to buy and sell. It could also be a short term buying or selling that has temporally heighten the volume. An increase in volume over time is generally a good thing.

Market cap is the total value of all the coins. XBY has a market cap currently at 61,146,000 USD. That means if you all up all the coins in the circulating supply of 430,000,000 aka coins you could potentially buy they equal that. This is important because this will have an effect on two things. If the supply of a coin is very high then it might look cheap but in fact it is just because there are so many coins that each one is not worth very much. Or if the price of an individual coin is high but the market cap is low it probably means that there are not many coins.