Total capitalization of the project
Indicator appearance
Market capitalization is a sentiment analysis indicator that displays the total capitalization of the project in dollars.
<aside> đŸ’¡ Market capitalization is calculated by multiplying the current price of the asset by its total issue.
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In the chart settings window, the user can select the display colors and transparency of the indicator.
Indicator chart settings
The indicator is available on all subscription versions.
Market capitalization refers to the total dollar market value of a project's tokens or a company's outstandingshares. The investment community uses this figure to determine the size of a project instead of sales figures or total assets. In acquisitions, market capitalization is used to determine whether or not a takeover candidate represents good value to the buyer.
Understanding the value of a company or project is an important task that is often difficult to determine quickly and accurately. Market capitalization is a quick and easy method of estimating the value of a company or project by extrapolating market opinion.
Once a company or project goes public and begins trading on an exchange, its price is determined by the supply and demand for its shares in the market. If there is a high demand for its shares due to favorable factors, its price will rise. If the company's future growth potential does not look good, sellers of the stock may reduce its price. Market capitalization then becomes a real-time estimate of the company's value.
<aside> đŸ’¡ Important: One company's stock price may be $50. Another company's stock price may be $100. This does not mean that the second company is twice the value of the first. Always remember to consider the number of shares issued (and thus analyze the total market capitalization of the company) when analyzing securities.
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The formula for calculating market capitalization:
$$ Cap=EmessionĂ—Price $$