cryptocurrency market capitalization

Coin A would have a new price of $10 with Coin B’s market cap, 10 times higher than the price it had under a $50,000,000 market cap. Investors who bought Coin A at $1 would be looking at a 900% profit. This illustration demonstrates how essential it is to research market caps before investing in crypto. Many cryptocurrency investors have coin targets where one believes a coin has the potential to reach in the future. Measuring your gains or losses in BTC value is therefore the most accurate way of valuing your investments. This method of calculating your trades takes into account the opportunity cost of holding on to Bitcoin as opposed to using your BTC to purchase other altcoins.

The locked tokens cannot be sold or transferred for a certain period. In return, they are compensated with various benefits, like access to the CRO Visa Card, or lock-up rewards for selected cryptocurrencies such as BTC, ETH, LTC, and CRO. A notable example would be Binance Coin , Binance will burn BNB every quarter equivalent to 20% of their net profits. Assuming a constant market capitalisation, the higher the inflation rate, the worse the price performance.

How to Calculate Crypto Price?

Bitcoin, for instance, has experienced downhill trends since its inception, and there will likely be more in the future. When the market goes down, it’s good to resist the urge to sell everything you own and re-invest into similar assets currently performing well. The first step is determining which category each transaction falls into, capital gain or loss. Each country has different rules about how much tax you pay on capital gains/losses, depending on how long you held the asset before selling it.

All transactions are stored in blocks, which are generated periodically and linked together with cryptographic methods. Once a block is added to the blockchain, data contained within it cannot be changed, unless all subsequent blocks are changed as well. We arrive at this figure by multiplying the price of 1 BTC and the circulating supply of Bitcoin. The Bitcoin price is currently $24,715 and its circulating supply is 19.32 million. If we multiply these two numbers, we arrive at a market cap of $477.43 billion. If you value a highly secure and decentralized network above all, Bitcoin is probably your best bet.

How to calculate the price of a cryptocurrency?

Assume that you have bought a coin that is worth $0.20 each, and it doubled in value to $0.40. You would feel ecstatic to have doubled your initial investment, or a return of a 100%. The increased interest and excitement towards cryptocurrencies has resulted in an influx of new money flowing into the cryptocurrency market.

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You may also enter your crypto market cap scenario to automatically calculate the respective crypto price at the set market cap. Market capitalization, also referred to as market cap or Mcap, is a metric used to calculate a cryptocurrency’s value and market size. It is calculated by multiplying the total number of coins or tokens in circulation by the current market price of each individual coin or token.

You can buy and sell Bitcoin on practically all cryptocurrency exchanges, but some exchanges list hundreds of different cryptocurrencies. One metric that is important for comparing cryptocurrency exchanges is trading volume. If trading volume is high, your trades will execute fast and at predictable prices.

The profit calculator determines your profit from your coin’s scenario value and current value. Look under Scenario Results, and you will see your profit, new value, current value, as well as related data. Upon clicking the target coin, the new market cap input will be replaced by the target coin’s market cap. Your portfolio’s new value will be updated with the respective valuation.

The word “altcoin” is short for “alternative coin”, and is commonly used by cryptocurrency investors and traders to refer to all coins other than Bitcoin. Thousands of altcoins have been created so far following Bitcoin’s launch in 2009. The Bitcoin price is currently $24,715 and there are 19.32 million BTC coins in circulation. If we use the formula from above, we multiply the two numbers and arrive at a market cap of $477.43 billion. Compare cryptocurrencies by market cap and calculate what price your favorite crypto coin would be worth with another crypto’s market capitalization.

Calculate the price of Asset A with the marketcap of Asset B

Besides, lock-up will not change the amount of circulating supply being displayed. An internal verification of the compliance of volumes in the base currency and quote currency is carried out for each exchange, for each pair . If the pair fails the test, it is not used for further calculations.

The below market cap calculator tool helps you to quickly calculate the market capitalization of a particular crypto asset. In order to calculate your crypto taxes, you’ll need to keep track of all your transactions throughout the year and figure out what capital gains or losses you have on each transaction. For example, if you purchase 1 bitcoin for $10,000 and sell it for $15,000 six months later, you would have made $5,000 in profit. The crypto calculator automatically updates related fields and values upon input for increased user experience. For instance, entering a crypto price prediction updates the values for new market cap, multiplier, new value, new rank, and more.

In fact, Ethereum LINK has grown so large that the word “altcoin” is rarely used to describe it now. The crypto market cap calculator’s comparison tool is extremely useful for comparing your token’s market cap relative to another coin’s market cap. The crypto market cap calculator helps you discover what the price of your token would be at another coin’s market cap easily. According to Infinite Market Cap, the Gold’s market cap is currently $11.246 Trillion. According to CoinMarketCap, the global crypto market cap is $1.44 Trillion.


If the same how to calculate coin price’s value remains stable at $1 and if the circulating supply increases to 2 million then its total market cap is $2,000,000. ICO stands for Initial Coin Offering and refers to a method of raising capital for cryptocurrency and blockchain-related projects. Typically, a project will create a token and present their idea in a whitepaper. The project will then offer the tokens for sale to raise the capital necessary for funding development. Even though there have been many successful ICOs to date, investors need to be very careful if they are interested in purchasing tokens in an ICO. In Bitcoin, miners use their computer hardware to solve resource-intensive mathematical problems.

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Multiply that by the coin price of 1,588.61 euros, and you arrive at the Ethereum market cap of 185.5 billion euros. As the token supply decreased from S to S1, the demand may drop but the price will increase from P to P1. However, readers should note that reduced supply may go back into circulation for lock-up and buy back . Different cryptocurrency projects have different inflationary models, for example, bitcoin’s inflation rate drops sharply every 4 years due to halving. Some may even be deflationary, like Binance coin which has reduced supply due to coin burn every quarter. Some coins may have inflationary supply due to new coins being issued through mining.

  • It’s really a cool platform that connects all of my portfolios into one place.
  • In practice, an increase in price per unit is the main way in which a cryptocurrency’s market cap grows.
  • The project will then offer the tokens for sale to raise the capital necessary for funding development.
  • Bitcoin has more room to grow and could be in the top 5 largest assets in the world in the future.

Any change to the price or market cap inputs will automatically display the coin’s new rank. However, some tokens pegged to fiat may have a price that is not controlled by market activities in the crypto ecosystem. Examples include Tether where the price is always equal to 1 USD, or Pax Gold which is linked to the price of gold. An asset the supply of which is higher than the demand for it can be considered to be oversold.

inflation rate

Any investment or trading is risky, and past returns are not a guarantee of future returns. Market capitalization illustrates the overall size of a cryptocurrency’s place in the market. Coin burn is the process in which a certain amount of coins is sent to an address without a known private key, essentially resulting in a permanent reduction in supply for the token. It is then imperative for the industry to continue to explore and develop new valuation methods as they draw in institutional investors.

An increased scrutiny of initial coin offerings shows that a professionalization of the ICO process is urgently needed. If this was your only transaction during the year, then it’s easy enough to calculate your taxes using this number. A change in our approach, and the ways we use technology, can be disruptive to the Financial Service Industry. To support the UK fintech, the FCA launched a sandbox to bring together innovators and regulators in a less regulated… We’re defending against external threats and guarding against misuse of insider access. To make profit calculations easier, you can just connect your portfolio and see advanced analytics automatically.

For stock, the number of shares issued to the public is determined by the company during an IPO. Similarly, for cryptocurrency, the amount of tokens issued to the public (or kept by the company/foundation) is determined by the company/foundation during ICO. It is a honestly a hassle to calculate your gains in satoshi as the volatility of Bitcoin makes it hard for you to accurately determine your current value. However, there are some great free tools that you can use to mitigate the complication. Actually, that’s one of the integral purposes of CoinStats – We’re actually #1 in the world by the number of integrated wallets and exchanges! By connecting your wallets and exchanges, you can receive timely calculations and alerts about your portfolio’s ups and downs.

In the next step, we look at classic financial valuation models and then at how these were adapted to fit the DeFi world of cryptocurrencies. Price is the agreed transaction price from buyers and sellers in the market. It is the most intuitive value used for calculating profit and loss, rate of return and performance of the asset.

Some may have deflationary supply due to tokens destroyed via coin burning. Hence there are many devils in the details for various kinds of token supply. Traditionally, financial analysts rely on a company’s financial statements to perform quantitative analysis. However, crypto assets do not provide this type of information, therefore traditional methods are mostly inapplicable.