Dollar price vs. Market Cap
The question is: What is the chance that Cardano will get from $ 0,26 to $ 2,60? And what about ZenCash chances to grow from $ 32 to $ 320?
Many traders don't look at the Market Cap
Dollar value does not mean anything! In many Facebook and Telegraph groups, there is guaranteed information that this and that altcoin is only $ 0.01, so it has a big chance to grow by 100, 1000, 10000%, simply because it's cheap. The difference between $ 0.01 and $ 0.10 does not look as big as $ 10 and $ 100, right? But this does mean NOTHING!
Market Cap
On this indicator, you can see the real chance of this and that altcoin to grow. Let's look at the example of Cardano.
The total market capitalization is $ 390 billion, of which Bitcoin has 38.1% dominance, what is market cap $ 148 billion. Bitcoin has always been the market leader, and in the near future he will probably stay at this position. There is a correlation between the value of the cryptos and the market capitalization, ie when prices rise, capitalization is increasing.
If Cardano could rise to $ 2,6, and we suppose the whole market cap would not differ significantly, it would increase its market capitalization from $ 6,6 bn to $ 66 bn. But it would make Cardano in the current capitalization cryptocurrency with approx 17 % stake in total capitalization, almost like Ethereum right now, which does not sound realistic, doesn´t it?!?
More realistic is the fact that ZenCash will increase its market capitalization from $ 122 million to $ 1,2 billion, bringing it from the 125th place, at the same prices to other cryptos, somewhere around 23 position with a still market capitalization of 0,3 %, which is still nothing at the current market capitalization of Cardano, which is 1,7 %.
Generally cryptocurrencies in the TOP 20 don´t have such a big space for the growth of capitalization.
When the capitalization of the entire crypto market will rise and Bitcoin will reach $ 50,000, then Cardano may grow proportionately similar to Bitcoin and the whole crypto market.
Therefore, look not only at cheap cryptocurrencies, but also on market capitalization.
Disclaimer: This is not financial advice, I am not a financial advisor. Please do your own research in every topic. Never invest your bread money.
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