Quote from: Ruoma on January 16, 2018, 02:27:39 PM

Hi,
I looked at the FRN chart on cryptomarket and I saw that market cap grew till $500,000 on july 18th 2017, then decreased slowly to $100,000 and crashed roughtly to 0 on dec 2nd.
However, I noticed there are always some transactions after, around $1000. Huh

Someone could explain what it means? Thx! Wink

Well, basically, the Market Cap of a crypto is based ( I should say "evaluated" ) on the exchanges of the coin + another little things

Sooooo : How can a market cap increase/decrease ?

Incrase : If on cryptopia 10 people are selling 1000 coins of Francs and 100 people want to buy 10000 coins

first : the sellers are going to sell to an higher price little by little, then the buyers will have to buy to an higher price again & again & again

second : the price is going up alright ? So a few crypto traders will start to talk about this famous coin that everyone wants to buy
+ Some announcements are made by the dev team

BOOOM price is going hot as hell ( sorry I'm French I used to say stupid stuff like that )

and now you will have a Market Cap Super high rated !!!

Decrease : If on cryptopia 1000 people are selling 10000 coins but we have only 10 buyers that are looking for 1000coins

first : Buyers will propose a lower price than the initial, sellers will have to agree with that, and little by little selling small amounts and low prices

second : the price is getting down alright ? So the sellers are loosing a lot of money, and when it's too low, they don't want to sell anymore.

That's how a coin exchange stay in stand-by for a few hours or a few days

And if no one has bought or sell any coin of this crypto since a few days, the market exchange will show a 0$ exchange and so a 0$ Market Cap

Market cap of little moneys like Francs are only based on the value and exchanges + when a coin is listed on only one exchange platform, the market cap will only be based on the exchanges of this platform, so if they have to make updates on the platform for 5 days and need to block exchanges, the market cap will be frozen or at 0*