If you didnt know... Market cap doesnt mean people put that much money in a crypto!


For example, Notcoin cap was 1.25 billion at some time yesterday, it doesn't mean people used 1.2 billion $ of their money to buy it.
It is calculated by just taking the current price, and multiplying it by the total number of coins in circulation.
So for example, if total crypto market cap is 3 billion, it doesn't mean people used 3 billion $ to buy the crypto. It could be more! or less. It is just a simple valuation.
Here are ways to find out how much money was put in a crypto:
1. Trading Volume
The trading volume of a cryptocurrency represents the total amount of the cryptocurrency that has been traded over a specific period (e.g., 24 hours). While this doesn't directly tell you the total money invested, it provides insight into how much activity and interest there is in the cryptocurrency.
2. Historical Trade Data
Analyzing historical trade data can give you an idea of the total investment over time. By examining the price and volume over various periods, you can estimate the total amount of money that has flowed into the cryptocurrency.
3. Initial Coin Offerings (ICOs) / Token Sales
For newer cryptocurrencies, the amount of money raised during initial coin offerings (ICOs) or token sales can provide an estimate of the initial investment. These figures are often publicly disclosed and can be found in project whitepapers or official announcements.
4. Market Orders and Liquidity
Examining the order books of major exchanges can give insights into the buying and selling pressure, which can help estimate how much capital is being used to acquire the cryptocurrency.
For Example:
To get a sense of the actual money invested in Notcoin, you might:
1. Look at the daily trading volume across major exchanges to see recent activity.
2. Examine historical trading volumes and prices to estimate cumulative investment over time.
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GateUser-e8254827vip
· 2024-05-17 05:25
Coins that multiply, not good for the future
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