difference between market cap and daily volume

[gekido]

When I check on google,

The market cap is the total USD value of bitcoin in circulation.

the volume is the total volume of buys and sells,

But the 24 volume isn't same as the market cap, what's the difference ?

Market cap is the exchanges between wallets and daily volume is only people buying and selling that's it ?

So doing transaction between 2 wallets does not mean you're buying and selling bitcoin that's it ?

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[Pearls Before Swine]

Market cap is the exchanges between wallets and daily volume is only people buying and selling that's it ?

Market cap is the value of all the bitcoin *in existence* in terms of U.S. dollars or whatever currency.

Volume varies by exchange.  It's the sum total of all the bitcoin (or whatever coin) that was traded that day, week, month, or whatever time frame.  Trading volume could theoretically exceed market cap on a very heavy trading day.  That's happened in the stock market with really active stocks before.

So doing transaction between 2 wallets does not mean you're buying and selling bitcoin that's it ?

Right, sending bitcoin doesn't affect either market cap or trading volume.  Only exchanges report volume, and it's an amount that's specific to any given exchange.

[gekido]

If its the value of all the bitcoin "in existence" then why this value can increase to 213 330 426 789 USD then decrease to 135 337 364 282 ?

How bitcoins that were existing could become non existent ?

I Dont understand this point,

May you please explain me ?

[BigBoom3599]

If its the value of all the bitcoin "in existence" then why this value can increase to 213 330 426 789 USD then decrease to 135 337 364 282 ?

How bitcoins that were existing could become non existent ?

I Dont understand this point,

May you please explain me ?

Market cap = Price of 1 BTC * Amount of bitcoins that exist

Currently roughly 18 million bitcoin exist. So if the price rises the market cap will rise, if the prices drops the market cap will drop.

A market cap of 213 330 426 789 USD would imply a BTC price of 11800 USD, while a market cap of 135 337 364 282 USD would imply a price of 7500 USD
So the market cap will fluctuate as the price fluctuates, while the supply slowly rises.

[gekido]

Thanks you BigBoom I perfectly understood now what is the market cap,

[pakhitheboss]

In a simple word Market cap is directly linked to the price or value of a Bitcoin. Volume is based on the amount of Bitcoin being traded on an exchange. Volume are checked to determine how fast can you trade jafor fiat or other Cryptocurrency. Market cap helps you analyse the popularity of any cryptocurrency.

[Nadziratel]

When I check on google,

The market cap is the total USD value of bitcoin in circulation.

the volume is the total volume of buys and sells,

But the 24 volume isn't same as the market cap, what's the difference ?

Market cap is the exchanges between wallets and daily volume is only people buying and selling that's it ?

So doing transaction between 2 wallets does not mean you're buying and selling bitcoin that's it ?

Unfortunately, it is very difficult to find a fully reliable platform. All platforms, including CMC, are open to manipulation. Therefore, the data for large coins may be slightly healthier. But be careful when researching small-volume cryptocurrencies.

[coolcoinz]

It's important to note that both the volume and market cap are relative indicators.
Only a small fraction of all coins in existence are traded on exchanges. Most people don't hold their coins online and don't trade daily. It has also been proven that a large number of exchanges fake their volume. Some even go as far as to say that 90% of volume is faked.
Market cap doesn't take into consideration that some coins have been lost in the way that their owners have died or simply lost their private keys. These coins are out of circulation and will most likely never return back to it.

[chaoscoinz]

When I check on google,

The market cap is the total USD value of bitcoin in circulation.

the volume is the total volume of buys and sells,

But the 24 volume isn't same as the market cap, what's the difference ?

Market cap is the exchanges between wallets and daily volume is only people buying and selling that's it ?

So doing transaction between 2 wallets does not mean you're buying and selling bitcoin that's it ?

Hello, If I'm not mistaken the "Marketcap" is equal to the total dollar market value amount of money flowing within the market from all the major exchanges.

So for example: We will utilize the most popular Market index website https://www.coinmarketcap.com/

 The market cap for BTC: Bitcoin is currently $168,032,255,473. This is the estimated total number value of dollars flowing from every where Bitcoin is major;y traded. The volume would be the amount of money following at any given time, so for arguments sake, the 24hr volume of cryptocurrency on Coinmarketcap would be $22,633,187,704. This number represents 1 whole day or 24-hrs of continuous influx of capital (money) flowing within the market at that specific time period.

Conclusion: $168,032,255,473 = Total amount of money ever/ $22,633,187,704 = how much money entered and exited for the day (24-hrs).

Check out this site here: it is just about all a trader needs for glossary index definitions of terms regarding investing! It really should be called DUE-DILIGENCE .COM

https://ww.investopedia.com/

[sunsilk]

Don't get confused with the difference of daily volume and market cap. As an addition to what bigboy explained to you, from the rootword itself for "daily" volume means that this is the amount of money (in and out) that's being traded on a daily basis in bitcoin.

As you can see the daily volume for bitcoin is $21.8B and that's different from its market cap. You can distinguish the different between it by just looking at the numbers.

[fiulpro]

One is a value and one is a number .

You brought 20 apples for 20$ , now understand this , 20 is your number of apples , take it as volume.

20$ is the cost of 20 apples , so your market cap is 20/20 - 1$ per share .

Therefore one is for total number of things circulating and one is for the cost !

[ChrisPop]

The market capitalization represents the number of Bitcoins/shares in circulation X the current price. The daily volume is the total Bitcoins/shares transacted on that day on a specific or multiple exchanges depending on the metric. These are pretty basic concepts, but you need to understand them in order to move on in the financial world.

[kryptqnick]

Market cap is the exchanges between wallets and daily volume is only people buying and selling that's it ?

Market cap is the value of all the bitcoin *in existence* in terms of U.S. dollars or whatever currency.

Volume varies by exchange.  It's the sum total of all the bitcoin (or whatever coin) that was traded that day, week, month, or whatever time frame.  Trading volume could theoretically exceed market cap on a very heavy trading day.  That's happened in the stock market with really active stocks before.

So doing transaction between 2 wallets does not mean you're buying and selling bitcoin that's it ?

Right, sending bitcoin doesn't affect either market cap or trading volume.  Only exchanges report volume, and it's an amount that's specific to any given exchange.

I think this is a good explanation. Market capitalization = the number of bitcoins * the price per bitcoin. It's as simple as that, so it's a real objective parameter of the market that can be taken into account. Trading volume, on the other hand, is tricky. Since it's exchanges' responsibility to report the value of the total amount of BTC traded there, it's known to be an unreliable thing. Volumes can and often are faked, and for now, there does not seem to exist a solution. As for the market cap, there's another thing I'd like to mention in regard to it. It is closely connected with the notion of market dominance which is the percentage of the total crypto market capitalization. And this one's been criticized for not depicting the real dominance of a coin on the market. Those who criticize this form of calculating dominance maintain that Bitcoin is actually way stronger than the dominance rate suggests, for instance. So op, take this into account as well.

[Asmonist]

Market cap is the value of the outstanding market share while daily volume is the number of shares traded over a period of time. Both defines about the shares in the stocks. Its quite similar but one talks about the value and the other one is the number. Both are siginificant in dealing with crypto trading and investing. These two are needed in every decision making whenever we buy and sell stocks.

[pooya87]

market capitalization meaning is already explained but you should also know that it is a characteristic that is imported from stocks market into cryptocurrency world and it is a false value to look at. in stocks market, market cap refers to the total value of all a company's shares of stock. in cryptocurrency world they replace stocks with number of coins and calculate the value which is wrong because in nearly all altcoin cases the real supply is far less than the total supply due to premines and other ways of creating tokens and not letting them go into circulation.
additionally in a company you can't produce shares out of thin air to any amount you like but in cryptocurrencies you can create a new altcion with any number of coins you like (a thousand trillion supply is possible for example!).

[blckhawk]

To simply put in words, Market Cap is the total supply of a currency, in this instance, Bitcoin in USD (because Bitcoin in itself has unclear value on its own). On the other hand, Daily Volume (which I assume is the Trading Volume), is the amount of Bitcoin being traded/exchanged for one whole day (24 hours) and determines the trading/market activity for a currency, which indicates whether its being used or not. Basically, a currency being used by the people is successful, while one which isn't, or useless, may deem to be unsuccessful.

[GideonGono]

When I check on google,

The market cap is the total USD value of bitcoin in circulation.

the volume is the total volume of buys and sells,

But the 24 volume isn't same as the market cap, what's the difference ?

Market cap is the exchanges between wallets and daily volume is only people buying and selling that's it ?

So doing transaction between 2 wallets does not mean you're buying and selling bitcoin that's it ?

In other words, coin market was the original price of the token while the daily volume was the changes of price by the token.

We can see if the token was success or not using a coinmarketcap if the daily volume was higher or lower than coinmarketcap.

[Darooghe]

The market cap is simply the current number of coins multiplied by the price of the coin. As a simple example, if a Cryptocurrency has 10 million circulating coins and the price is currently $1, that Cryptocurrency now has a market cap of $10,000,000. The market Cap is important, and the main reason is that it brings stability to price in my opinion. a high or low market cap reveals the resistance of a coin to volatility. A coin with low market cap is more likely to be volatile, as holders of the coin with a small market cap are at risk of being crushed by larger traders. but what daily volume means for Cryptocurrency in the simplest terms is total amount of particular Cryptocurrency trades in particular platform within 24 hours.

So doing transaction between 2 wallets does not mean you're buying and selling bitcoin that's it?

No one can give an answer to this question because no-one knows. Bitcoins are transfers of money without giving the reason for the transfer. Why the transfer was made is unknown and unrecorded. but you may right in one sense. Much of the reported volume, maybe as much as 60% of all but the top tier retail Cryptocurrency exchanges may be fake, and we need a more trusted reference. probably it is a good idea to regulate the exchange of Cryptocurrencies.

[JC btc]

Their difference is that market cap of a coin is the total value of all coins in circulation. It is usually calculated as the last traded price or the average price multiplied by circulating coin supply.

While on the other hand, volume is the amount of active trading that is happening of a specific coin, for example if Bitcoin has $10M in trading volume, current price is $9k then it means that about 1,111 is currently being actively traded.

[Oasisman]

Ok I guess the OP got the answer already, and most of the commenters have the same explanation between the difference of market cap and daily volume, and that was all correct.
That can be easily distinguished though, but I understand, that's a newbie question.
Now, I think the OP needs to lock this thread to prevent users from posting the same replies, thus making this thread become a spam mega thread.