What is the impact of public float on the market capitalization of cryptocurrencies?

1 answers

• May 07, 2022 · 3 years ago
  The impact of public float on the market capitalization of cryptocurrencies is significant. The public float represents the number of coins or tokens available for trading on the market. It is a measure of the liquidity and tradability of a cryptocurrency. The market capitalization of a cryptocurrency is calculated by multiplying the current price per coin or token by the total supply. The public float affects the market capitalization by determining the available supply for trading. A larger public float generally leads to a higher market capitalization, as there is more supply to meet the demand. This increased supply can attract more investors and increase trading volume, driving up the price and market capitalization. Conversely, a smaller public float may result in limited liquidity and trading activity, which can lead to lower market capitalization. Therefore, the public float is an important factor to consider when assessing the market capitalization of cryptocurrencies.
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