Definition:
The total crypto market capitalization is the measure of the total value of all existing
cryptocurrencies.
Total crypto market capitalization is determined by adding up the market value of each individual cryptocurrency, which is found by multiplying the current market price with the total supply. This figure gives an idea of the overall size of the cryptocurrency market.
Monitoring the total crypto market capitalization is important because it can provide insight into the overall health and growth of the cryptocurrency market.
In the photo below, you can see the total crypto market capitalization since 2015. At it's peak, there was just over $3 trillion invested into crypto.
What to watch for:
Market size: If the total market capitalization is increasing, it can indicate that more investors are interested in cryptocurrencies. Looking at the market size of cryptocurrencies in comparison to other assets, such as gold or specific stocks, may provide an indication of what trends to expect in the future.
Market dominance: By comparing the market capitalization of different cryptocurrencies, you can identify which coins have the highest market share and therefore the most dominance in the market. This can indicate which coins are most popular among investors and which have the most potential for growth.
Market Cycles: By monitoring the total crypto market capitalization over time, you can identify market cycles and potentially use these as indicators of buying or selling opportunities. It's worth noting that total crypto market capitalization should be considered along with other market indicators, like trading volume and price action, to get a full picture of the market trends.
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