Market Capitalization Analysis (From April 25th to May 25th)

Market Capitalization

Picture Cred: The Information; Disclaimer :This is not investment advice, I do not own any of the coin I am reviewing, nor have I ever and do not plan on doing so in the near future from the time of this article’s release. No one/entity/company/corporation paid me crypto/dollars/assets/favors or any other liquifiable asset/currency to write this article and I am neither profiting directly or indirectly from its curation. This article was not written under duress/pressure/threat/extortion or any other unfavorable condition either. I also do not possess any coins from a direct or indirect competitor of the coin I am reviewing and have no tied interest to the success/failure of this project. To reiterate, this is also not financial advice. I am not recommending any positions and any statements that happen to be made about such a position is nothing more than a reflection of opinion, not legal advice.

All data produced in this section provided courtesy of CoinMarketCap and CoinCodex. The differences in the two will be outlined in this section as well. Calculations performed manually — see reference section for more information.

For this section, we will be looking at the month of May primarily and drawing back to the later part of the month of April intermittently in order to get a better understanding of the change in market cap over the last 30 days (approximately, give or take a couple days).

The market’s high and lows, marketcap-wise, will be explored as well as the percentage of depreciation/appreciation from those points and the dates at which they occurred in order to make broader inferences about the state of the market.

Cryptocurrency Market Capitalization (30-days):

This period tracks the fluctuation in the cryptocurrency market capitalization from April 24th, 2018 to May 24th or 25th, depending on the availability of the data needed.

Below is a visual representation of the change in the crypto market cap during this time:

Figure 1; Source: CoinMarketCap
Figure 2; Source: CoinCodex

In Figure 2 above, the yellow and green lines represent the market capitalizations for Bitcoin and Ethereum, respectively.

Cryptocurrency Market Capitalization 30 days Ago (April 25th, 2018)

Figure 3; Source: Coincodex

In Figure 3, we can see that the aggregate market capitalization approximately 30 days ago (April 25th, 2018) for all cryptocurrency was $436.15 billion.

Also, by percentages of the total market cap:

Bitcoin ($164.89 billion) — 37.81%

Ethereum ($70.02 billion) — 16.05%

Others/Non-BTC+ETH ($201.24 billion) — 46.14%

As noted for the last several months, the value of all other cryptocurrencies (minus Ethereum) has far surpassed that of Bitcoin alone.

Let’s take a look at the discrepancy in value when the market capitalization had reached its highest point over the last 30 days, which was on May 2nd, 2018.

Cryptocurrency Market Capitalization at its Highest Point Over the Last 30 Days (May 2nd, 2018)

Figure 4; Source: CoinCodex

So, on May 2nd, 2018, we can see that the market capitalization rose to a total of $457.55 billion.

Also, by percentages of the total market cap:

Bitcoin ($154.87 billion) — 33.85%

Ethereum ($66.85 billion) — 14.61%

Others/Non-ETH+BTC ($235.83 billion) — 51.54%

What’s interesting about these stats is that it appears that the primary increase in market capital has come from coins other than Ethereum and Bitcoin.

To put that another way, Bitcoin and Ethereum were not the primary culprits responsible for the increases OR decreases in market capitalization throughout the month of May and the data shows this pretty clearly.

Let’s take a look at some comparisons below.

Cryptocurrency Market Capitalization Delta From the Start of Our 30-Day Period (April 25th, 2018) to its Highest Point (May 2nd, 2018)

In terms of dollar value, here is the net gain/decrease of market capitalization among the three categories (Bitcoin, Ethereum, Others/Non-ETH+BTC) from April 25th, 2018 to May 2nd, 2018:

Bitcoin = -$10.02 billion / -6.07%*

Ethereum = -$3.17 billion / -4.3%*

Others/Non-ETH+BTC = +$34.59 billion / +17.19%*

In Terms of the Delta of Total Share of the Market Capitalization From April 25th, 2018 to May 2nd, 2018:

Bitcoin = Decreased from a 37.81% to a 33.85% share of the total cryptocurrency market capitalization

Ethereum = Decreased from a 16.05% to a 14.61% share of the total cryptocurrency market capitalization

Others/Non-ETH+BTC = Increased from a 46.14% to a 51.54% share of the total cryptocurrency market capitalization

*Values are rounded

What’s most interesting is the fact that the coins outside of Bitcoin and Ethereum were what primarily lifted the market over that period of time.

It is also worth noting that the market capitalization is based on the amount of circulating supply rather than total supply.

So, as time goes on, the circulating supply will increase, which slowly increases the multiplier used for market capitalization.

For instance, at the current market price of Bitcoin at the time of writing ($7,606.13), the market capitalization is approximately $129,709,997,036 ($129 billion). The circulating supply is 17,053,350 BTC.

If all 21 million coins were minted, then the market capitalization would be $159,726,000,000.

Current Cryptocurrency Market Capitalization (May 24th, 2018):

At this point (May 25th, 2018), the total market capitalization for the entire cryptocurrency sphere is at the lowest that it has been in the last 30-days.

Figure 5; Source: CoinCodex

On May 24th, 2018, the total cryptocurrency market capitalization was at a value of $144.10 billion.

By percentages of the total market cap:

Bitcoin ($128.93 billion) — 38.92%

Ethereum ($58.23 billion) — 17.58%

Others/Non-ETH+BTC ($144.10 billion) — 43.50%

Aggregate Delta (Change +/-) in Cryptocurrency Market Capitalization from April 25th, 2018 to May 24th, 2018:

Bitcoin = -$35.96 billion / -17.87%

Ethereum = -$11.79 billion / -16.84%

Others/Non-ETH+BTC = -$57.14 billion / -28.39%

In Terms of the Delta of Total Share of the Market Capitalization From April 25th, 2018 to May 24th, 2018:

Bitcoin = Increased from a 37.81% to a 38.92% share of the total cryptocurrency market capitalization

Ethereum = Increased from a 16.05% to a 17.58% share of the total cryptocurrency market capitalization

Others/Non-ETH+BTC = Decreased from a 46.14% to a 43.50% share of the total cryptocurrency market capitalization

Interpretation of Data:

The data presented above yields credence to the idea that the bulk of the gains/losses in the cryptocurrency market capitalization have been experienced primarily by coins other than Ethereum or Bitcoin.

This is corroborated by information from Coinmarketcap and Spir.ai, which show that only 56 cryptocurrencies posted a positive ROI for the month of May.

This means that only 3.2% of cryptocurrencies are currently in profit for the month of May.

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