Looking Long Term: Trillion-Dollar Market Cap

By Nicolas Abington | Crescent City Capital Market Analyst Intern

As we experience a recent downward trend for the crypto market, it’s essential to keep positive so we can take advantage of the discount on some of the most popular coins. To help fuel this sentiment, I have decided to conduct some analysis of what the crypto market would look like today with a trillion-dollar market cap. I first collected the dominance level, circulating supply, and their current market caps for four of the most relevant coins. I then multiplied the dominance level percentage by one-trillion dollars, creating a new market cap. I calculated the new market price by dividing the new market cap by current circulating supply, where we saw a 384% increase in price on average.

Obviously, the market cap is not going to be having such a dramatic shift today. Still, the concept of a trillion-dollar market cap is not far off. While everyone in the crypto sphere has a future price prediction, it’s important to note that the type of investment necessary is feasible. There has been a push for regulation of the crypto field since it’s beginning that’s been met with stark debate. The debate has recently leaned more towards pro-regulation, and legislation has recently caught up to that sentiment with virtual currency tax regulations. While regulation is inhibiting by nature, it also legitimizes the space, making it a more desirable investment, which overall increases the likelihood that institutional investors begin to adoption. 

Downtrends are natural in the crypto market, and it’s critical to zoom out our bar charts as not become discouraged. Focus on the long term, trade with logic instead of emotion, and find the indicators that correspond to your trading style. As we continue into the next few months, we should watch diligently what the crypto market has to offer.