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Crypto market capitalization describes the current market value of a given cryptocurrency or blockchain network. It is an important parameter that provides us with a fair idea of a market’s financial strength.
Introduction to Crypto Assets
Much effort is not required to calculate the market capitalization of a given crypto asset. Though many crypto followers prefer to compare the market cap of different individual projects, it is equally helpful to know its value on an industry-wide scale. Presently, Bitcoin and Ethereum are the biggest cryptocurrencies in terms of market capitalization. While this is true, all cryptocurrencies’ total market cap is more significant than their individual ones. Major crypto data aggregators disclose the total market capitalization. We need to know what this data means and what it tells us about the market’s state.
Meaning Of Crypto Market Capitalization
The term "market capitalization" is widely used for traditional securities but is also of significance in analyzing cryptocurrencies. Market capitalization is simply the measure of the value of an asset. When applied to cryptocurrencies, we can define it as a measure of a cryptocurrency network’s value. It can be calculated manually. To calculate the market cap of a given asset, multiply the circulating supply by the price of one unit of the asset.

Here is an illustration. For instance, XCOIN and YCOIN are two networks. XCOIN has a circulating supply of all its 2,000 coins. On the other hand, YCOIN has a circulating supply of 50,000 coins out of a maximum supply of 100,000 coins. If we assume that the market price of XCOIN is $100 and that of YCOIN is $5, which of the two networks has a greater market cap?
The calculation for market capitalization is expressed as MC = CS x Price.
With this, we can calculate the market cap of both networks.
XCOIN Market Cap = 2000 x $100 = $200000
YCOIN Market Cap = 50000 x $5 = $250000
From these calculations, we observe that the YCOIN network’s value is bigger than that of XCOIN, even with a lower unit price. Therefore, a market cap is better used to estimate the value of a token as opposed to the price.
Diluted Crypto Market Capitalization
This is one way of estimating the future value of a particular network. It is a term that is widely used in the stock market. It is a representation of a company's valuation if every stock option is exercised and all securities are converted to stock.

Let us apply the term to the crypto market. For instance, the maximum possible supply of Bitcoin is 21 million, out of which about 18.505 million are in circulation. This corresponds to a market cap of approximately $195.2 billion if we assume $10550 per BTC.
To calculate the diluted market cap, one has to consider the maximum supply of Bitcoin. This means that we will multiply the total supply of Bitcoin by its price. It also helps to determine if an asset is overvalued or undervalued.
DCM (Diluted crypto market cap) = TS (Total Supply) x Price
Understanding Total Crypto Market Capitalization
As the name implies, total crypto market capitalization is the combined total value of all crypto assets on the crypto market, such as Bitcoin, altcoins, stablecoins, tokens, etc. The information about the total market cap is very vital because it discloses the entire industry's size.
There is no doubt that many crypto assets’ value tends to fluctuate due to the crypto market’s volatility. In fact, since the inception of cryptocurrencies, the entire market cap of the industry never breached the $20 billion mark in the first six and a half years. However, in 2018, the market capitalization skyrocketed to $770 billion and is now over 2 trillion.
Significance Of Total Market Capitalization

One primary importance of the total crypto market cap is that it is helpful to compare with other economic sectors. Many enthusiasts often compare the total market caps of cryptocurrencies and other sectors like the stock market and precious metals. They do this because it gives them a fair estimate of the future growth of the crypto market. Even as this estimate is helpful, it is not certain. Therefore, it is still unclear how to determine the potential value of cryptocurrencies or blockchain projects with absolute accuracy.
Closing Thoughts on Market Caps
Crypto market capitalization is an essential metric. It tells the valuation of the whole crypto industry. It can provide a fair comparison between the present valuation of an asset and its value later in the future. Although market cap is a quick means of making projections about any financial industry, other market parameters need to be considered in order to arrive at a holistic assessment of that industry.
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Terraform Labs Founder Do Kwon Appeals Extradition Decision in Montenegro

The appeal will be reviewed by the Montenegro court, and the Montenegrin Ministry of Justice faces challenges in reaching a conclusive decision by the December 15 deadline.
Kwon Do-hyung, the founder of Terraform Labs (TFL), has filed an appeal against the recent extradition ruling made by the High Court of Podgorica in Montenegro, according to a local South Korean media outlet.
The Montenegrin Court of Appeal confirmed on December 6 that Kwon Do-hyung contested the decision, stating, “I do not accept the court’s decision to extradite me, so I do not submit to the court’s decision.”
This appeal prompts the Montenegrin Court of Appeals to reassess the extradition decision, introducing uncertainty into the resolution timeline.
Extradition Request and Timeline
The court initially approved Kwon’s extradition request on November 24, stipulating his transfer to either the United States or his home country, South Korea.
The current appeal has altered the decision-making timeline, making it challenging for the Montenegrin Ministry of Justice to finalize the extradition destination before the December 15 deadline.
During the extradition trial, Kwon expressed a preference for being extradited to South Korea, a request that was granted by the court. However, the appeal has extended the timeline, potentially rescheduling the extradition proceedings to January, according to Crypto Times.
Despite Kwon Do-hyung’s appeal, local observers in Montenegro suggest slim chances of overturning the extradition decision. A prevailing belief among Montenegrin government officials and judiciary figures is that Kwon’s continued detention attracts undue attention.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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