Need Help In Understanding The Significance Of Market Cap & Volume(24hr) & More

[TRoze]

Hello,

I'm having a bit of trouble figuring out exactly what the market cap of a coin means and it's significance as well as the volume (24hr).  I've googled first trying to find an answer but haven't quite found anything that explains it so I have a good understanding.

More specifically what I'm wondering is what is the significance of the market cap of a specific coin and what's the meaning of it relative to the price of that coin, and if they have any impact or relation to the price?  I'm wondering the same thing about the volume (24h) of a coin as well.  Another aspect that could be thrown into here as well is circulating supply. 

Here are some numbers for reference and to work with as examples (Market Values As Of 6/18/2017):


Bitcoin (BTC)
Market Cap: $43,068,820,234
Price: $2626.58
Circulating Supply: 16,397,300 BTC
Volume (24h): $1,425,600,000
% Change (24hr): 2.92%


Ethereum (ETH)
Market Cap: $36,000,361,623
Price: $388.84
Circulating Supply: 92,583,045 ETH
Volume (24h): $949,423,000
% Change (24hr):  3.93%


Ripple (XRP)
Market Cap: $10,318,883,520
Price: $0.269491
Circulating Supply: 38,290,271,363 XRP *
Volume (24h): $111,007,000
% Change (24hr):  2.93%
*Not Mineable

I want to thank anyone in advance for your help and patience with my lack of knowledge even though I've been using BTC for a few years now.  I greatly appreciate it.  Thank you!

[1715087526]

1715087526

[1715087526]

1715087526

[Sniper44]

it doesn't have much of a meaning or significance, specially when you are looking at an altcoin's market capitalization.
and the most important reason for that is the fact that market cap is just the result of number of coins * price
and when you look at the numbers you just posted here, you see numbers but there are a lot of things behind those numbers. for example did you know that ETH had a premine kind of deal which meant 72,000,000 of those coins were created in the initial step and all the remaining is the available supply?

in other words $27,936,000,000 (77.59%) of ethereum's market cap is FAKE.
the same is true about Ripple. the circulating supply is not clear. it probably is far less than what you can see there.

p.s. i don't know where you have gotten ETH price from but you need to check it again. it used to be $388 but now it has dropped drastically down to $374

[Iranus]

Market cap = price x total coins in circulation.

Volume = the amount the coin has been traded in a set time frame (for cryptocurrencies, typically 24 hours).

The market cap can be misleading, as the amount of coins that are actually being traded may vary relative to the amount of coins that have been created and are theoretically in circulation.  It's hard to say how accurately the market cap reflects the value of the coin, but it's usually not well.

[EXtremeAEX]

Market Cap: Circulating number of coins x Current Price of Coin.

(Example: 1 LTC = 0.016 BTC, Circulating Supply[Amount present] 52 000 000, Market Cap = 52 000 000 x 0.016 ~ = 830 000 BTC)

Volume (24hr): Total coin bought/sold in terms of BTC for past 24 hr

Circulating Supply: Amount present (Some coins have not been mined, like BTC)

% Change: Percentage increase or decrease denoted by the -/+ sign over the past ___(24hr/week/...)

[BitcoinHodler]

these are all Data that you have access to and you have to process this Data to reach a conclusion.
the market cap as others mentioned and i also agree about is useless.

the rest however are good and can be very useful.

i like to consider all the other factors all together, never alone. price, volume, changes of these two in the past 24 hours or couple of days, circulating supply, total supply,

circulating supply is the number of coins that has been released to public. it can be token distribution or from mining reward. and this is useful for the famous rule of Supply and Demand. the demand of altcoins is nearly non existent so it is only supply that controls things most of the time. and the more supply a coin has the less its price will be. (example: Doge coin)

the my favorite combination: price and volume.
whenever there is a pump going on or is going to happen soon, the volume is the first thing that starts showing signs. it goes up. then price follows and then these two will be so much bigger than previous days indicating a pump is happening if both are up.
the usage is that you can notice this and jump in and make easy and quick profit instead of holding an altcoin for months hoping it goes up and doesn't drop and wreck you!

[arpon11]

I may not go deep in explaining in figures what volume mean in bitcoin or market capitalization but the simple understanding I have is this: volume is the amount of risk capital in a particular asset why market capitalization is amount of capital supply multiplied by the assets price. There are significant to a trader because it is what interpret the force of demand and supply.

[TRoze]

these are all Data that you have access to and you have to process this Data to reach a conclusion.
the market cap as others mentioned and i also agree about is useless.

the rest however are good and can be very useful.

i like to consider all the other factors all together, never alone. price, volume, changes of these two in the past 24 hours or couple of days, circulating supply, total supply,

circulating supply is the number of coins that has been released to public. it can be token distribution or from mining reward. and this is useful for the famous rule of Supply and Demand. the demand of altcoins is nearly non existent so it is only supply that controls things most of the time. and the more supply a coin has the less its price will be. (example: Doge coin)

the my favorite combination: price and volume.
whenever there is a pump going on or is going to happen soon, the volume is the first thing that starts showing signs. it goes up. then price follows and then these two will be so much bigger than previous days indicating a pump is happening if both are up.
the usage is that you can notice this and jump in and make easy and quick profit instead of holding an altcoin for months hoping it goes up and doesn't drop and wreck you!

Beautifully explained and great information!  Exactly what I was looking for!  And thank you to everyone that replied and further helped me understand and helped me add just one more nugget of valuable information that just further contributes and grows my knowledge and understanding as a whole! I appreciate it!

[decryptionary]

It looks like this question may have already been answered. But just in case, I've got a definition from here: https://decryptionary.com/dictionary/market-capitalization/

"Market Capitalization is a way to rank and judge the size of a cryptocurrency or stock in a company. The total dollar value is calculated by taking the total supply and multiplying it by the price. For example, if bitcoin is worth $4,000 and there are 16,500,000 coins in existence, that means its market cap is $66,000,000,000 or $66 billion." -Decryptionary

[cryptozw]

these are all Data that you have access to and you have to process this Data to reach a conclusion.
the market cap as others mentioned and i also agree about is useless.

the rest however are good and can be very useful.

i like to consider all the other factors all together, never alone. price, volume, changes of these two in the past 24 hours or couple of days, circulating supply, total supply,

circulating supply is the number of coins that has been released to public. it can be token distribution or from mining reward. and this is useful for the famous rule of Supply and Demand. the demand of altcoins is nearly non existent so it is only supply that controls things most of the time. and the more supply a coin has the less its price will be. (example: Doge coin)

the my favorite combination: price and volume.
whenever there is a pump going on or is going to happen soon, the volume is the first thing that starts showing signs. it goes up. then price follows and then these two will be so much bigger than previous days indicating a pump is happening if both are up.
the usage is that you can notice this and jump in and make easy and quick profit instead of holding an altcoin for months hoping it goes up and doesn't drop and wreck you!

Well explained, no one could have explained any better, especially on pump and dump. Thanks hey.

[sureyea]

I found this article much helpful in explaining Coin Market cap, Circulating Supply and Volume Anyone new here will find it easy to understand.

[Insight1]

In some cases the circulating supply has not been released..   can someone explain why they have not been released to the public?

Since it is such an important factor to determine rise and fall of price.

Anyone with this knowledge would be appreciated

Thanks

[eztoken]

In some cases the circulating supply has not been released..   can someone explain why they have not been released to the public?

Since it is such an important factor to determine rise and fall of price.

Anyone with this knowledge would be appreciated

Thanks

Yep, thanks Insight1. Same question.

We have token on our own, and update information in Coinmarketcap. We did not know how to set market cap and circulation supply stats, instead of question marks.

Anyone know this problem? Please share with me. Thanks.

[13abyknight]

Most of the other replies here would've already answered most of your questions but I'll emphasize on the importance of the 24 hour volume data.
Basically, newer or unfamiliar tokens are subject to a lot of pump and dump action which involves huge buy-ins at a lower price and a sell-off at a higher price. This can easily be figured out just keeping en eye on the trade volume in the last 24 hours. If the volume seems way higher than the past few days, it would be wise to stay away from it until it reaches a stabilization point.

[cryptospacemedia]

I have a question.

Is there any relation between circulating supply and price of the coin? something like if the circulating supply is higher, the price of the coin will be less as compared to the price of coins with lower circulating supply.

Examples:

BTC
Circulating supply: 21m.
Price: $10,562.20 USD

ETH
Circulating supply: 98m.
Price: $783.73 USD

TRX
Circulating supply: 65b.
Price: $0.04 USD

XRP
Circulating supply: 39b.
Price: $0.90 USD

NULS
Circulating supply: 25m.
Price: $3.90 USD

Does that mean the price of NULS is more likely to go up than that of ripple, trx and xrp? or may be ETH someday?

Could someone please explain this to me?