Does marketcap value shows the coin price stability?

tsaroz

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Quote from: asriloni on May 28, 2020, 08:30:09 PM

Quote from: qazgroup on May 28, 2020, 04:36:19 PM

Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

I think liquidity and buy sell orders provide better data that may help to check market demand, price and stability, if a coin has low liquidity that simply means that traders and investors are not giving much attention to that coin and there can be big gaps while buying or selling such coins personally i like to trade only highly liquid pairs.

If you were not checking it directly to the site and that will be useless. As far as I know the marketcap has not provided a reliable data to the liquidity. Sometimes the exchange site itself even manipulate the result of its daily trade volume and liquidity. The only best thing to verify that through seen the buy and sell order in the market.

Yes it does. When the marketcap of a coin is larger, it would require a much larger trading amount to move its price. There will be lesser chances of manipulation by whale and groups. There are not much manipulation on the marketcap for popular coins as we can verify the supply and we know the price. Reported data from exchanges is what gets manipulated, liquidity and order books are not always trustworthy.

asriloni

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Quote from: qazgroup on May 28, 2020, 04:36:19 PM

Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

I think liquidity and buy sell orders provide better data that may help to check market demand, price and stability, if a coin has low liquidity that simply means that traders and investors are not giving much attention to that coin and there can be big gaps while buying or selling such coins personally i like to trade only highly liquid pairs.

If you were not checking it directly to the site and that will be useless. As far as I know the marketcap has not provided a reliable data to the liquidity. Sometimes the exchange site itself even manipulate the result of its daily trade volume and liquidity. The only best thing to verify that through seen the buy and sell order in the market.

qazgroup

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Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

I think liquidity and buy sell orders provide better data that may help to check market demand, price and stability, if a coin has low liquidity that simply means that traders and investors are not giving much attention to that coin and there can be big gaps while buying or selling such coins personally i like to trade only highly liquid pairs.

casperBGD

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Quote from: avikz on May 27, 2020, 12:54:12 PM

Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

Market cap is delusional. Let's assume you have created a coin with 1 million total supply and listed it in an exchange. Someone buys 1 coin for $2 from that exchange. So the market cap of you coin becomes $2 million.

As you can see, the market cap data can be misleading if you take any serious decision based on it. Also it doesn't point out whether the price of coin will be stable or not. There's is no correlation between market cap and price stability.

would not agree, marketcap is very important information, and token price is nothing without complete picture with number of issued tokens, tokens in circulation and total number of tokens
what is also important is that info sites, as CMC for example, is using circulation number of tokens for marketcap, which can be misleading, if small portion of total number of tokens is in circulation, we had few scams up to this point based on that, where some tokens (FOIN for example) had total marketcap greater than BTC at one moment, due to small portion of tokens in circulation, and people still bought it, afterwards FOIN goes down like 1000x times

Pffrt

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Small market can easily be manipulated but higher marketcap doesn't necessarily mean that price will not be volatile. BTC marketcap is the highest, still it can fluctuated and manipulated by big whale. We have seen how BTC behave, even within 1 or 2 hours trade.

Yogee

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No correlation between the two just like what Avikz said.

Price stability and volatility will be determined by the different market players. Despite being around more than a decade, the cryptocurrency market is still young if you compare it to traditional markets. There are relatively small group of players that moves the price and they are commonly known as "Whales". There were reports that some groups from the financial institutions have joined the game but judging how the price still moves up or down in a short amount of time, I think we need more bigger players that will trade against each other. Keep in mind that having more big players doesn't guarantee price stability. It's possible that they won't be on the opposing end all the time.

batang_bitcoin

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Most of us rely to market caps and volume because in that basis, we will know the true stand of that coin currently. I have italicized the word because as long as the market cap and volume are strong for that certain coin then we can consider it as temporary stable.
But this is crypto and most of the time, the value changes and those stability basis that we've made changes over time.

avikz

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Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

Market cap is delusional. Let's assume you have created a coin with 1 million total supply and listed it in an exchange. Someone buys 1 coin for $2 from that exchange. So the market cap of you coin becomes $2 million.

As you can see, the market cap data can be misleading if you take any serious decision based on it. Also it doesn't point out whether the price of coin will be stable or not. There's is no correlation between market cap and price stability.

semobo

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Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

You can check the price graphs to identify the stability of that coin, remember always compare the prices against BTC value to get better idea on stability because price of bitcoin is highly stable and all the coin is moving in accordance with bitcoin so you will get more fluctuations on USD value graphs for any coin.

PlayFuel_Official

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Quote from: minairia3 on May 03, 2020, 07:36:13 AM

Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

How can you say? Its been there for a reason and I assume many traders also depends on the market cap. Even me uses it and in fact it helps. Maybe you find it not useful but for some people it does help.

Marketcap is a compilation of all volumes traded on exchange and particularly those huge markets. I am using coinmarketcap as reference for this but also rely sometime on coingecko.

Price stability does not totally depend on marketcap even findamental reason or some huge fud can easily affect every coins in the market.

I think you might have misunderstood our explanation. We are aware that marketcap can be a useful information to consider to check for a coin/token's price. We have only stated that marketcap is not the only factor that could affect the coin/token price stability. As for your latter point, we agree that some fundamental reason like the current events or anything that can have a huge FUD can easily affect the price movements in the market.

We can conclude then that marketcap is one of the most common things to be checked for price prediction but we have to check and monitor the current trends also that might affect it.

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Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. ..

Do you mean such as CMC or CoinGecko? Those two or others are only the tracker sites where the traders, investors, and people can track certain coins to be one of their considerations. They offer information about coins, exchange, volume, prices, and also the charts. However, we cannot believe in them at 100% especially on the exchanges listed because yeah, there may be some price manipulation or fake volume.

But for the price stability? Well, they just offer the data, you may be able to use it to track the stability or chart of a certain coin. However, it doesn't offer how the stability of the coins.

Fatimahcrypto

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Coin market cap cannot guarantee the price stability of a cryptocurrency, at best the prices the tokens are traded across several exchanges are shown and this would be helpful for decision making. Price stability is quite a difficult case in the cryptocurrency market owing to the fact that the major determinant of prices is the forces of demand and supply.

masterrex

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Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

IMO, the market cap of any particular crypto project/platform is just a "confidence booster" for its users/investors and it is not portrayed the whole status of any crypto project or company. for me what matters most is the productivity of the platform and its ability to create a demand for its product and services offered to its clients. But we must admit all of those platforms like Coinmarketcap/CoinGecko etc. are very useful for gathering data and information for all available cryptocurrency as you wish.

cytpoway121

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To my knowledge, coinmarketcap or coingecko are not just trackers, and they do not teach charts readers stability.
The marketcaps are there to guide you on each tokens volume and liquidity. That way you get to understand the difference between a pump in token and a surge.

Always do your own research, and do remember to trade wise, always.

jacafbiz

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Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

Crypto marketcap is the product of the current price and the current circulating token supply in the market. What most people focus on when lookin at a project is the price which is very wrong because I can use 1BTC to pump some tokens to 200% gain within a day and if you are a bagholder and want to sell like $10k of the tokens, you can crash the price to zero because the is no liquidity, that is why people prefer to trade on big exchange where there is volume and liquidity

minairia3

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Quote from: PlayFuel_Official on May 03, 2020, 07:25:06 AM

In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

How can you say? Its been there for a reason and I assume many traders also depends on the market cap. Even me uses it and in fact it helps. Maybe you find it not useful but for some people it does help.

Marketcap is a compilation of all volumes traded on exchange and particularly those huge markets. I am using coinmarketcap as reference for this but also rely sometime on coingecko.

Price stability does not totally depend on marketcap even findamental reason or some huge fud can easily affect every coins in the market.

PlayFuel_Official

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In crypto info websites, a crypto's marketcap value is an aggregated amount taken from various exchanges. It has been known that altcoins with a smaller marketcap can be subject to price manipulation by controlling the supply. Therefore, price stability may not necessarily rely upon the marketcap. Instead, the market value from daily transactions and trade volume can show possible trends in the future, but even this shows no certainty for price stability.

Topic: Does marketcap value shows the coin price stability? (Read 196 times)