Market capitalisation - what is it and why does it matter?
For us to understand the principles of total and altcoin market caps, we must first start by outlining what market capitalisation is, and how it is calculated. A popular assumption within the cryptocurrency space behind why a particular coin cannot reach a certain price is because “the market cap will be too high, and it is impossible for this much capital to go into it”. This, incorrectly assumes that an asset’s price is determined by its market capitalisation, which could not be further from the truth. In reality, it is the opposite; the price dictates its market capitalisation:
Market capitalisation = price of asset x number of coins in circulation
Market participants collectively set the price of the asset in question. Whatever price market-participants are willing to exchange the asset for will determine its market value. Hence the market capitalisation of an asset is a direct reflection of its current price.
A tool we use to gauge how the cryptocurrency market is performing as a whole is the total market cap (TradingView Ticker: TOTAL). It gives us a fair and balanced view of where the market is headed. It is important to note that this index is primarily influenced by Bitcoin, as it remains the largest digital asset by market capitalisation. Bitcoin is the oldest and most recognised cryptocurrency worldwide. More significantly, the majority of altcoins remain paired with BTC, and this maintains a high demand for Bitcoin.
Bitcoin’s market share of the total market cap is called the “Bitcoin Dominance”. This can be viewed using the “BTC.D” ticker on TradingView to give us an idea of the capital flow between Bitcoin and altcoins. During the 2017 bull-run, Bitcoin started rallying before the Altcoins. As Bitcoin topped out mid-December 2017, its dominance started dramatically dropping as capital flowed from Bitcoin to altcoins. This resulted in the altcoins rallying for an extra two weeks on average.
For a balanced view of the altcoins market, another index exists, the altcoin market capitalisation (TradingView Ticker: TOTAL2). This index removes Bitcoin’s major effect on the total market capitalisation.
When the total market cap starts a new uptrend, it is usually reflected in the Altcoins’ market cap as well. However, because of Bitcoin’s massive dominance, there may be a lag factor included. This is where analysing Bitcoin’s dominance comes into play. If BTC.D starts to lose momentum and seems ready to reverse, this indicates that we may witness capital flow from Bitcoin into Altcoins. Of course, this scenario assumes that the total market cap’s uptrend remains strong. If signs of weakness start to show, in the direction of an upward trend, then BTC.D will have limited use.
In summary, these indices can help cryptocurrency traders and investors examine the market’s overall health before taking decisions. It can be a useful additional confluence to any trader’s arsenal. However, it should not be relied on to calculate precise price points. It is always a good idea to backtest any additions to one’s strategy before considering risking real capital.
100% Success Money Back Guarantee
If our approach doesn’t outperform the overall crypto market during your subscription, we’ll give you a full refund of your membership. No questions asked. For quarterly and monthly subscribers this is applicable once your subscription runs for 6 consecutive months.
Take your next step towards crypto success
$799/year
Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.
For your security, all orders are processed on a secured server.
What’s included in Pro:
Success Guarantee, if we don’t outperform the market, you get 100% back, no questions asked
24/7 access to experts with 50+ years’ experience
All of our top token picks for 2025
Our latest memecoins pick with 50X potential
On hand technical analysis on any token of your choice
Weekly livestreams & ask us anything with the team
Daily insights on Macro, Mechanics, and On-chain
Curated list of top upcoming airdrops (free money)
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.
Frequently Asked Questions
Can I trust Cryptonary's calls?
Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.
Do I need to be an experienced trader or investor to benefit?
No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.
What makes Cryptonary different from free crypto content on YouTube or Twitter?
Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.
Why is there no trial or refund policy?
We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.
Do I get direct access to the Cryptonary team?
Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.
How often is content updated?
Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.
How does the success guarantee work?
If our approach to the market doesn’t beat the overall crypto market during your subscription, we’ll give you a full refund of your membership fee. No questions asked. For quarterly and monthly subscribers this is applicable once your subscription runs for 6 consecutive months.
Recommended from Cryptonary
