With this tool, you can discover the necessary market capitalization of the desired project to reach the price you want. As an example, let's take Cardano and see what would be the required market cap in order to reach $25. At the moment I am writing this, Cardano's price is $0.4942, and its market cap is $16,892,112,294. For a $25 price, Cardano will need a market cap of $854,518,023,776, which is Bitcoin x2 current market cap. This tool was created to give roughly an idea of how much growth a certain project needs to reach a certain price. In the above example, we can see that Cardano would require an 854 billion market cap for a $25 price. Realistically, this would not happen anytime soon. I made this tool mostly because I have seen many people saying some crazy prices (like XRP to $50, Shiba Inu at $10, Dogecoin at $5...) for certain projects which sounded very silly.
Desired Price:
$50
Required MC:
$2,497,680,354,866
Desired Price:
$10
Required MC:
$5,468,319,047,067,901
Desired Price:
$5
Required MC:
$664,168,781,349
As you noticed, those market cap numbers are unreal unless developers would burn tokens at a crazy rate. This reduces the supply, which theoretically acts to increase the currency's price and benefit investors.
Is Burning Cryptocurrency Good or Bad? Cryptocurrency burning takes tokens out of circulation. Similar to corporate stock buy-backs, it can be beneficial for the cryptocurrency or backfire, depending on investor and user sentiments and how the new supply and demand dynamics influence prices.
Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures.
Market capitalization is a metric used to understand the current market value of an asset. In the context of cryptocurrencies, crypto market capitalization refers to the present value of the cryptocurrency network. You can calculate the market capitalization of an individual cryptocurrency as well as the industry as a whole. In both cases, a popular short-form, market cap, is used to denote the metrics. Many experts say that crypto market capitalization allows them to understand the development and performance of a crypto asset from a broader perspective. Market capitalization is not a concept exclusive to the crypto sector. You can find its use in traditional stock markets as well. Nevertheless, you can spot many differences between these two calculations.
Crypto market capitalization = supply of crypto assets in circulation x the value of an individual unit. Lets try to calculate the market cap of Litecoin, a popular alternative to Bitcoin. At the time of writing, one Litecoin costs $60. It is believed that there are 71,133,343 Litecoins currently in circulation. Therefore, the market cap of Litecoin would be the cost of a single Litecoin multiplied by the total number of Litecoins in circulation. When multiplying these numbers, we get the total figure of Litecoin market cap: $4,268,000,580. This number is equal to the total market value of the cryptocurrency network. When the market cap of one cryptocurrency goes higher, we can understand the network is on the path to success. For instance, during the past 4 years, the market cap of Bitcoin saw a rise from $68+ billion to $1+ trillion.
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
A blockchain is a digital record of transactions. The name comes from its structure, in which individual records, called blocks, are linked together in single list, called a chain. Blockchains are used for recording transactions made with cryptocurrencies, such as Bitcoin, and have many other applications.
While the crypto market cap is indeed an important figure, it is not enough to make the right investment decisions. You should combine this data with other insights and metrics to analyze where the crypto market is going. Nevertheless, if other metrics say that an asset is worth investing in, an increasing market cap is a sufficient signal to back up your decision.