What are the factors that influence the calculation of free float market cap in the cryptocurrency industry?

1 answers

• Feb 18, 2022 · 3 years ago
  In the cryptocurrency industry, the calculation of free float market cap is influenced by various factors. One of the key factors is the availability of the coins in the market. If a significant portion of the coins is locked or held by a small group of individuals or entities, it can result in a lower free float market cap. On the other hand, if the coins are widely distributed and available for trading, it can contribute to a higher market cap. Another factor is the trading volume of the cryptocurrency. Higher trading volume indicates a more active market and can result in a larger market cap. Additionally, the price of the cryptocurrency also plays a role. A higher price per coin can lead to a higher market cap, assuming the supply remains constant. Lastly, investor sentiment and market trends can impact the market cap. Positive news and developments can attract more investors and drive up the market cap, while negative events can have the opposite effect. Overall, these factors collectively influence the calculation of free float market cap in the cryptocurrency industry.
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