Are Market cap and Circulating supply valuable indicators?

[_bitnux_]

I read a lot of people in the speculation thread claiming that you have to look for coins that have low market cap and low circulating supply, because they are likely to rise in price.
Then, i read a lot of people (often the same people as before) claiming to buy Ripple, EOS, cardano or IOTA, coins which have a ridiculosly high circulating supply compared to their market cap (which is high to).
Why?
Mistake? Hypocrisy? trying to pump the price and recover some loss? or is actually correct?

If it is a correct affirmation, those coins have no chance to grow in price. Not more chances as dogecoin has at least.
The only think that can differ between those coin and dogecoin is that they have an active staff/project behind, but there is still the supposition, sustained by many, that because they have a very high circulating supply and market cap they cannot actually rise in price.

Then, why those people say that if at the same time they buy the coins they should not buy? Huh

Tell me what you think.

[1714975018]

1714975018

[bitcoinvestor]

At least yes, you can predict the price in the future event from the marketcap. There are many new coins. you can find the superficial data from coinmarketcap.com. It is my favorite instead of coingecko and cryptocompare. coinmarketcap price and volume is almost the same as the market data. you can go to exchanger and compare the price in coinmarketcap and excahnger, there is only sligt difference.

[shinratensei_]

I read a lot of people in the speculation thread claiming that you have to look for coins that have low market cap and low circulating supply, because they are likely to rise in price.
Then, i read a lot of people (often the same people as before) claiming to buy Ripple, EOS, cardano or IOTA, coins which have a ridiculosly high circulating supply compared to their market cap (which is high to).
Why?
Mistake? Hypocrisy? trying to pump the price and recover some loss? or is actually correct?

If it is a correct affirmation, those coins have no chance to grow in price. Not more chances as dogecoin has at least.
The only think that can differ between those coin and dogecoin is that they have an active staff/project behind, but there is still the supposition, sustained by many, that because they have a very high circulating supply and market cap they cannot actually rise in price.

Then, why those people say that if at the same time they buy the coins they should not buy? Huh

Tell me what you think.

It's not 100% correct. In fact the result on the marketcap and price will depend on the development progress itself because the development can attract the more people to FOMO.


People are spreading misleading explanation about that.


Marketcap and supply don't matter a lot right now. There is a lot of shitcoin with low and high supply but they are all can't reach high marketcap at the same time.

And it caused by the really bad development progress.
The result will determine anything as the output from the development itself.

[xeqoRameshAxueamExaqana]

marketcap only anlys is good coin
because is big volume transacion, much trader is trading
so coin fast incraese
total suply low ussualy is good price,

[Seetheummerallyeah]

Market cap isn't everything but it is very important in estimating realistic gains of a particular coin.

A good example of this is Ripple. When it was $3 people were making wild claims of how Ripple was going to "moon to at least $9". What these people fail to understand is that the market cap of Ripple was already so high that in order to reach $9 it would have to surpass Bitcoin. In other words, it wasn't going to happen.

Circulating supply is tied in to market cap as market cap is simply the (circulating supply x current price of coin).

[pugi2]

I dont think that is the mistake because we must make our asset is from low market cap and low supply and also from high market cap which is meaning the coin is very famous.
So we can have both selection of coin. Have some from each of them would be very suggested as we know split asset can have more profit.

[23xfi]

Since I learned how to compare market cap with circulating supply of tokens, I have been making much better choices in terms of picking what tokens to invest in. However, as to every rule, there's always an exception. The main driving force of value, to me, is the project behind the token and the team behind the token. In the case of EOS and Cardano, there are gigantic projects behind these tokens. Projects that if successful, will be worth a lot more than the current price. This is the one time when people can shelve their "buy low circulating supply and low market cap" rule.

I hope this makes sense.