Key Cryptocurrency Metrics

 

📊 Key Cryptocurrency Metrics (Explained Simply)

1. Rank

• What it means: Position of a coin in the global crypto market based on its market capitalization.

• Why it matters: Shows how big and trusted a coin is compared to others. (Bitcoin is usually #1.)

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2. Market Capitalization (Market Cap)

• Formula: Current Price x Circulating Supply

• What it means: Total value of all coins currently in circulation.

• Why it matters: Helps measure the size and stability of the coin.

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3. Fully Diluted Market Cap

• Formula: Current Price x Total Supply

• What it means: Value of the coin if all coins were in circulation.

• Why it matters: Shows long-term potential and total coin supply impact on value.

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4. Market Dominance

• What it means: Percentage of the total crypto market cap that belongs to this coin.

• Why it matters: Higher dominance = more influence over the whole crypto market.

• Example: If Bitcoin has 64% dominance, it means it’s controlling most of the market’s value.

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5. Trading Volume (24h)

• What it means: Total value of the coin traded in the last 24 hours.

• Why it matters: High volume = strong interest, liquidity, and potential price movements.

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6. Circulating Supply

• What it means: Number of coins currently available in the market and can be traded.

• Why it matters: Affects price — the more supply, the lower the price can go (all else being equal).

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7. Total Supply

• What it means: Total coins already created minus any coins burned or lost.

• Why it matters: Gives you an idea of how much more could enter the market in the future.

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8. Max Supply

• What it means: The maximum number of coins that can ever be created (e.g., Bitcoin: 21 million).

• Why it matters: Coins with a fixed max supply are often seen as deflationary (like gold).

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9. Issue Date / Launch Date

• What it means: The year or date when the coin or token was first introduced or released.

• Why it matters: Older coins may have more trust and history. Newer ones may be riskier or more innovative.

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10. All-Time High (ATH)

• What it means: The highest price the coin has ever reached.

• Why it matters: Useful for understanding growth potential or price retracement.

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11. All-Time Low (ATL)

• What it means: The lowest recorded price of the coin.

• Why it matters: Useful to know historical risk levels