10 crypto metrics for every investor

If you are serious about crypto investing, then these are 10 metrics you absolutely must know about.

If you are serious about crypto investing, then these are the 10 metrics that you absolutely must know about:

  1. Circulating Supply

  2. Maximum supply

  3. Total supply

  4. Market Capitalization

  5. Fully Diluted Market Capitalization

  6. Volume

  7. Volume to Marketcap ratio

  8. Velocity

  9. Price Highs & Lows

  10. Holders Statistics

Note: Numbers quoted are as of Thursday 22nd July 2021

1. Circulating Supply

This is the number of coins/tokens that are circulating in the market and are in public hands. Usually, the lower this number, the higher the prices are likely to be.

In the case of Bitcoin (BTC), this figure increases every few minutes as new bitcoins are generated with every block that is mined. SHIBA INU leads this race with 394,796,000,000,000 SHIB.

Some of the cryptos with the largest circulating supply are:

Source: https://coinmarketcap.com/

2. Maximum supply

This is the maximum number of coins/tokens that will ever exist in the lifetime of the crypto.

The maximum supply of some cryptos is:

  • Bitcoin (BTC): 21 million

  • Cardano (ADA): 45 billion

  • Ether (ETH): Unlimited

Yes, you read that right! An unlimited number of ETH can be issued!

3. Total supply

This is the number of coins/tokens that have been already created, minus coins/tokens that have been “burned”.

  • In the case of Bitcoin (BTC), the circulating supply is equal to the total supply.

  • SHIBA INU (SHIB) has a total supply of 1 quadrillion. That's 1 followed by 15 zeros!

4. Market Capitalization

This is the total market value of a crypto's circulating supply.

Market Capitalization = Circulating Supply x Current Price

Historically, Bitcoin (BTC) has always had the highest market capitalization and Ethereum the second highest.

Some of the cryptos with the largest market cap are:

Source:https://coinmarketcap.com/

5. Fully Diluted Market Capitalization (FDMC)

This is the market capitalization if the maximum supply was in circulation.

FDMC = Price x Max Supply

If the maximum supply is unknown or unlimited, then:

FDMC = Price x Total Supply

If the maximum supply and total supply are both unlimited, then we can't calculate the FDMC.

6. Volume

This measures how much of a crypto was traded in a specific time period usually 24 hours, or 7 days.

Some of the cryptos with the largest volumes are:

Source:https://coinmarketcap.com/

7. Volume to market cap ratio (VMR)

Volume to Marketcap Ratio (VMR) is what you get when you divide the 24-hour volume of a crypto by its / market capitalization.

VMR = Volume / Market Capitalization

Some of the top 10 cryptos by VMR are:

Source: Future Money Wallet: https://www.futuremoneywallet.com/

8. Velocity

Crypto Velocity Ratio or velocity is the number you get when you divide the 24-hour volume of a crypto by its circulating supply.

Velocity = Volume / Circulating Supply

Let's take some examples:

Source: Future Money Wallet: https://www.futuremoneywallet.com/

9. Highs & Lows

Many people don't know that BTC is not always the most expensive crypto. It has been overtaken at times by yearn.finance (YFI).

Apart from all-time-high (ATH) and all-time-low (ATL) prices, the following high & low price-related metrics are important: 24 hours, 7 days, 30 days, 90 days, and 52 weeks.

10. Holders Statistics

In the crypto universe, whales are addresses that own more than 1% of the circulating supply of a crypto. Investors are addresses that own 0.1% to 1% of the circulating supply of crypto.

Some of the important metrics related to holders of crypto are:

  • The total number of unique addresses that hold assets in the network.

  • Addresses that have been active over the last 24 hours and 7 days

  • Transactions carried out by the top addresses by balance

Some of the top Bitcoin addresses by balance are:

Source: https://coinmarketcap.com/currencies/bitcoin/holders/