ai16z (AI16Z) redefines venture capital with AI-driven investments on Solana. Powered by DAO governance, its AI agent leads innovation in blockchain VC.

 (AI) agents in the crypto industry has experienced unprecedented growth over the past couple of years, even by the standards of the already booming overall AI sector. Smart agents that automate a variety of complex tasks have been a major driver of growth for many innovative businesses, including in the blockchain niche. 

Now, one project is taking it all to a completely new level by pioneering AI-driven venture capital (VC) investment. Named ai16z (AI16Z), it’s a 

 (DAO) that uses community-driven governance and smart VC investing managed by a powerful 

 known as “Marc AIndreessen.” Anyone familiar with the world of technology investing and its behemoth, Andreessen Horowitz (also known as a16z), has probably guessed that the name of the DAO-based project is a tongue-in-cheek reference to this giant of the investment sector, and the Marc AIndreessen AI agent is an allusion to its maverick co-founder, 

Having started its operations in late October 2024, ai16z has already seen its native token, AI16Z, hit a 

 of $2 billion on New Year's Eve, Dec 31, 2024, the first Solana-based AI agent cryptocurrency to achieve this feat.

 blockchain that uses a DAO governance model and utilizes an AI agent to invest in technology-focused projects and crypto assets. 

The ai16z platform is a bold undertaking to completely redefine the way VC investment works. Community members 

 holders of the platform’s native token, AI16Z 

 participate in a democratized governance process and may propose projects for consideration by the AI agent, which ultimately manages ai16z’s investment activities. Token holders can provide their input into investment opportunities, but the process of investing is managed by “Marc AIndreessen” 

 an AI agent created using the popular Eliza development framework.

The platform's name, ai16z, is a humorous reference to Andreessen Horowitz, also known as a16z, a leading technology investment firm, while Marc AIndreessen is a pun referencing a16z's co-founder, Marc Andreessen.

The project was launched on Solana in late October 2024. By Dec 31, 2024, its native token, AI16Z, had reached a market cap of $2 billion, a level that no other AI agent crypto on Solana has so far managed to attain. As of the time of this writing on Jan 10, 2025, AI16Z has become the industry’s third-highest-capped cryptocurrency in the category of AI agents, with a market cap of around $1.7 billion.

The platform's investment management agent, the AI Marc, has been developed using ElizaOS, a popular framework for developing AI agents. ElizaOS allows you to build sophisticated AI agents for complex tasks ranging from social media personas to interactive characters. in the case of the ai16z platform, the Marc AIndreessen agent is certainly capable of highly sophisticated functionality, with the ability to make and execute investment decisions.

The Eliza project's origins date back decades before the birth of blockchain technology. In 1966, Joseph Weizenbaum, a computer scientist at the Massachusetts Institute of Technology (MIT), created the ELIZA program, a rule-based system with elements of early AI technology. ELIZA allowed users to have rudimentary text-based interaction with the computer, essentially acting as the first AI chatbot. Decades later, the program was adapted to the needs of the now booming 

 to form the basis of the Eliza AI agent development framework.

ai16z's Eliza-based Marc AIndreessen is among the most popular recent examples of this technology. The AI Marc acts as a multi-functional agent that can analyze on-chain data and transactions, execute orders and evaluate project proposals submitted by the platform's user community.

The term “virtual marketplace of trust” refers to the ai16z component that manages and maintains trust scores, assigned to the platform's users, to enhance investment decision-making. As we noted earlier, holders of the AI16Z token can propose projects and assets for AI Marc's consideration.

The marketplace of trust combines three main components to create and manage trust scores:

The platform’s AI investment manager, the Marc AIndreessen AI agent, is publicly represented on social media with the X handle of 

. This “AI Marc joined” the social media platform back in September 2022, and as of early January 2025 has over 30,000 followers.

Marc AIndreessen’s X account boldly predicts that the AI venture capitalist is going to outperform the real-world Marc Andreessen, something that is, of course, going to be a challenging task. At the time of this writing, Marc AIndreessen has around $25 million in assets under management (AUM) — not the worst result for a three-month-young project — although this is a fraction of the over $40 billion managed by the real-world Marc Andreessen.

 is another initiative related to the ai16z platform. It lets token creators, typically those launching 

, conduct fundraising activities to support their projects. Creators are given one week to conduct their fundraising, and can choose who to invite to their fundraising activities. If successful in raising funds, a creator receives 90% of the amount (in the form of Solana’s SOL tokens) to invest in their preferred protocols on the blockchain.

The funds and investors attracted by the creator are structured as a DAO, specific to that token and its investment activities.

daos.fun is one of the recent examples of meme coin launch platforms on which creators have the opportunity to crowdfund their projects. These platforms have grown popular in the aftermath of the successful market run of 

, a Solana-based meme coin launchpad introduced in early 2024. However, daos.fun maintains creator verification, potentially making it a safer environment for investors interested in meme coin projects.

Unlike pump.fun, with daos.fun, verified creators are issued special badges to signal their trustworthiness. This is potentially a key factor in reducing the risk of users investing in 

, a problem of gigantic proportions in the world of meme coins.

The AI16Z token was launched in late October 2024, initially trading at $0.02–$0.06. In mid-November, the token received its first major boost when a partner at Andreessen Horowitz mentioned the AI fund in their post on X. On Nov 19, 2024, the token rose to nearly $0.50 before losing some of these gains over the following days.

However, the real boost to the token’s fortunes came in late December. On Dec 23, 2024, AI16Z was trading at around $0.60. It started to rise sharply from then on, and by Jan 2, 2025, the token catapulted to its all-time high of $2.47. Although AI16Z has lost some of these spectacular gains as of Jan 10, 2025, it still flies high, trading at $1.51. The market has clearly shown an enthusiastic attitude to the idea of AI agent–based crypto investment.

As of Jan 10, 2025, AI16Z is trading at $1.54, 38.4% below its Jan 2, 2025 all-time high (ATH) of $2.47 and 14,809.5% higher than its ATL of $0.01019 on Nov 3, 2024.

Long-term forecasts for the token are largely bullish.DigitalCoinPrice 

 to trade at $5.30 in 2027 and $8.23 in 2030, whileCoinCodex 

AI16Z is available on Bybit's Spot market as a 

. To buy the token, first, navigate to the 

 section in the main menu on Bybit's homepage, then select the

option from the drop-down menu to find the Spot pair. Alternatively, enter the token's ticker in the search box at the upper right side of the homepage. You’ll see the 

 option appear. Click on that option, and it will take you to the pair's trading page. On the right side of the page, enter the options for the quantity to buy and order type. Having specified your options, press the prominently displayed 

 campaign to grab a share of a 50,000 AI16Z prize pool. Under the terms of the campaign, new users need to accumulate a deposit volume of at least 100 AI16Z, or deposit 100 USDT and trade 100 USDT worth of AI16Z via their first trade with Bybit, in order to share in a 35,000 AI16Z prize pool. Meanwhile, existing users can also earn rewards by simply trading at least 500 USDT worth of AI16Z on Bybit’s Spot market to earn their share of a 15,000 AI16Z prize pool. The campaign is valid through Jan 20, 2025, 8:59AM UTC, and rewards are on a first-come, first-served basis.

The ai16z platform is the ultimate AI/crypto synergy initiative. It's the first venture capital firm to employ AI agents in the core function of investment management. The project aims to become a real disruptor in the field. Currently, the $25 million in AUM handled by the AI Marc looks quite modest. However, the project is still in the early months of its market presence, and only time will tell if the AI-based VC model championed by ai16z becomes a viable alternative to traditional investment fund management.

Advanced

what is ai16z crypto.png

ai16z (AI16Z): The AI-Driven DAO Redefining Venture Capital

Seraph is an advanced AI agent built by BitMind, designed to operate autonomously or semi-autonomously across diverse applications. Find out more now!

 emerges as a new autonomous AI agent at the intersection of blockchain technology and AI, combining the decentralized intelligence of 

. Designed to serve as the ultimate digital guardian, Seraph operates as an authenticator and evaluator, distinguishing truth from deception in a world increasingly dominated by synthetic data.

This article delves into the ecosystem of Seraph by Virtuals and its unique features, market performance and benefits for Bybit users.

 is a blockchain-based platform built on the 

 network that enables its users to create AI agents — virtual characters that can engage and interact within their environments in ways that closely mimic human behavior. These AI agents are designed to operate autonomously — learning, making decisions and even performing on-chain transactions, making them versatile tools for various applications.

The platform addresses the untapped potential of the $100 billion AI market, particularly within the 

 industries. It introduces decentralized co-ownership of AI-powered tokens, giving users tangible value through their engagement with its ecosystem.

Virtuals Protocol offers two types of agents:

In brief, Virtuals Protocol’s AI agent platform ensures transparency, security and co-ownership, evolving the way AI agents are integrated into gaming, entertainment and beyond.

, is designed to operate autonomously or semi-autonomously across diverse applications. Its platform prioritizes transparency, security and decentralization in its operations, and embodies the concept of a self-reliant digital entity capable of learning, adapting and performing tasks with minimal human intervention. 

Whether in gaming, content creation or data analysis, Seraph’s integration with blockchain frameworks such as Virtuals Protocol enables it to interact smoothly within decentralized ecosystems. This innovative approach positions Seraph as a transformative tool, bridging AI advancements with web3’s decentralized principles.

Leveraging advanced AI algorithms, Seraph can execute tasks based on predefined instructions and learned behaviors. This adaptability allows it to make decisions and perform actions autonomously, enabling superb functionality across a variety of use cases, such as gaming, content creation and data analysis. 

Built on the Virtuals Protocol, Seraph boasts exceptional interoperability to support interaction across multiple blockchain platforms and 

 (DApps). This design ensures Seraph’s versatility, allowing it to function within diverse ecosystems while maintaining transparency and security. 

Ownership of Seraph is represented through tokenization, making it a co-owned AI agent. Each SERAPH token corresponds to one ownership stake, enabling contributors to share in the potential growth and value of Seraph’s performance.

Seraph generates revenue through various activities, such as facilitating transactions or performing specialized tasks. This revenue is distributed among its token holders, creating a passive income stream for co-owners. Ultimately, Seraph incentivizes participation and fosters a sustainable ecosystem in which users and developers can mutually benefit.

By integrating with Bittensor, Seraph accesses a decentralized intelligence network that enhances its AI inference capabilities. Bittensor’s infrastructure provides Seraph with enough processing power and specialized outputs to ensure accuracy, efficiency and reliability in its operations. Virtuals Protocol further strengthens Seraph’s foundation by offering a secure, scalable platform for deploying AI agents. 

Seraph’s design supports deployment in a wide range of scenarios:

Integration With Bittensor and Virtuals Protocol

Bittensor’s decentralized intelligence framework allows Seraph to learn and adapt continually, while its TAO emissions provide Seraph’s operations with efficiency and incentivize both developers and stakers with a reward-driven model. Meanwhile, Virtuals Protocol enabling co-ownership and transparent interaction within the blockchain ecosystem. Together, these technologies empower Seraph to function as a highly effective AI agent that embodies the principles of decentralization, security and utility.

 an innovative staking mechanism that benefits its participants as follows:

The staking model aligns user incentives with Seraph’s mission, fostering a collaborative ecosystem for all participants to thrive.

 of $21 million, with a drawdown of 42% over the past week amid a wider market sell-off. However, the token is up 35% in the past 14 days, and reached an all-time high of $0.03859 on Jan 2, 2025.

SERAPH has a maximum supply of 1 billion tokens and a circulating/total supply of 999,550,515 million as of Jan 9, 2025.

Seraph by Virtuals merges AI and blockchain to deliver autonomous, interoperable agents, positioning itself as a transformative force in the broader web3 and DeFi system. Its road map includes expanded applications and enhanced utility, paving the way for future innovations. 

 the current SERAPH Launchpool event and stake SERAPH, MNT or USDT to earn a share of 15,000,000 SERAPH. Sign up 

Intermediate

seraph.png

Seraph by Virtuals: AI Agent Utilizing Bittensor and Virtuals Tech

As Donald Trump prepares for his inauguration as the 47th president of the United States, the cryptocurrency landscape stands at a significant crossroads. 

As Donald Trump prepares for his inauguration as the 47th president of the United States, the cryptocurrency landscape stands at a significant crossroads. His unexpected embrace of Bitcoin during the 2024 campaign has set the stage for a transformative period for the crypto industry. This report will delve into the potential impacts following his inauguration, focusing on regulatory shifts, market reactions, macroeconomic contexts and the challenges that may arise.

One of the most anticipated changes under Trump's administration is a regulatory environment that’s more favorable to cryptocurrencies. With a Republican majority in both the House and Senate, the likelihood of reduced legislative barriers is high. This political landscape could enable the passage of bills aimed at clarifying the regulatory framework for digital assets.

Financial Innovation and Technology for the 21st Century (FIT21) Act

 is positioned to gain traction. This legislation aims to delineate digital assets as either commodities or securities, potentially easing compliance burdens for crypto firms. Such clarity could foster an environment conducive to innovation, enabling startups and established companies to navigate the regulatory landscape with greater confidence.

Key appointments in Trump's administration will play a crucial role in shaping the future of cryptocurrency regulation.

Trump is expected to issue multiple executive orders on his first day in office, which may include the establishment of a crypto council and directives aimed at improving banking access to crypto services. These initiatives could signal a commitment to fostering a supportive environment for the cryptocurrency industry.

Moreover, the proposal for a U.S. Bitcoin reserve, while controversial, reflects a bold vision that could further legitimize cryptocurrency in the eyes of traditional finance. However, the legality and feasibility of such an initiative remain topics for debate.

The cryptocurrency market is likely to experience heightened volatility as traders react to the inauguration and subsequent policy announcements. Historical patterns indicate that major political events significantly influence cryptocurrency prices. With Trump's pro-crypto rhetoric, traders may position themselves for potential rallies, leading to a surge in speculative trading around key events tied to the new administration.

The inauguration may also trigger a wave of institutional investment. The launch of Bitcoin Spot ETFs has already opened the door to institutional players, and a Trump administration could further incentivize this trend by promoting a favorable environment for crypto investments. Increased institutional participation is expected to enhance market stability and liquidity, providing a solid foundation for the cryptocurrency ecosystem.

Trump's economic policies are anticipated to focus on fiscal spending and tax cuts, potentially leading to inflationary pressures. Historically, cryptocurrencies like Bitcoin have been viewed as a hedge against inflation, which might drive demand from investors seeking to protect their wealth. As inflation rises, the appeal of digital assets as a store of value could grow, drawing more participants into the market.

As Trump assumes office, the correlation between Bitcoin and traditional markets, particularly the S&P 500, may strengthen. If Trump's policies lead to a robust economic recovery, both crypto and equity markets could rally together, reflecting a broader "risk-on" sentiment among investors. This dynamic could create new investment opportunities, as traditional investors increasingly view cryptocurrencies as part of a diversified portfolio.

Despite a pro-crypto stance, the possibility of regulatory backlash looms large. As the government seeks to establish control over the rapidly evolving digital asset space, issues related to taxation, 

 and consumer protection could pose significant challenges for the industry. The crypto community has long been cautious of overregulation, and any missteps in implementing new policies could lead to pushback from stakeholders.

Public Sentiment and Legislative Pushback

Public sentiment toward cryptocurrencies can shift rapidly, influenced by market volatility and regulatory developments. As Trump’s administration navigates this landscape, any signs of regulatory overreach could provoke backlash from the crypto community. Advocacy groups and industry leaders may rally for more balanced policies, emphasizing the need for innovation-friendly regulations that protect investors without stifling growth.

Moreover, the political climate surrounding cryptocurrency is fraught with division. While Trump has garnered support from many in the crypto community, detractors exist who view cryptocurrencies with skepticism. This division could complicate legislative efforts, requiring careful navigation to achieve consensus on regulatory frameworks.

The inauguration of Donald Trump as U.S. president is poised to bring significant changes to the cryptocurrency landscape. With a focus on pro-crypto policies, potential regulatory clarity and a macroeconomic environment that could favor digital assets, the coming months will be pivotal for the industry.

Stakeholders, however, must remain vigilant, as challenges and uncertainties continue to loom in this dynamic and evolving sector. The interplay between regulatory initiatives, market reaction and public sentiment will shape the trajectory of cryptocurrencies in the United States and beyond. As the crypto community watches closely, the implications of Trump's presidency could redefine the future of digital assets, fostering innovation while navigating the complexities of regulation and public perception.

In this transformative era, the cryptocurrency industry stands ready to adapt, innovate and thrive, provided it can successfully manage the challenges that lie ahead. The next chapter in the saga of digital assets is unfolding, and its outcomes will resonate well beyond the confines of the market, influencing the broader economic landscape for years to come.

Beginner

Trump Inaug Article Banner.png

Donald Trump's Inauguration: What to Expect and Its Implications

Compound Finance has added Ethena's stablecoin USDe and Mantle's liquid staking token mETH to its platform, allowing them to be used as collateral. 

Daily Top Performer —  Sonic SVM (SONIC)

The S&P 500 was closed on Thursday. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 1.64%, with Bitcoin and Ether dropping by 2.20% and 2.75%, respectively in the past 24 hours.

Today's top performer is SONIC, which surged 8.0% following its listing on Bybit Spot and the launch of staking with up to 30% APR rewards.

Sonic SVM (SONIC), token launched on January 9, 2025, is a Layer 2 gaming platform using the Solana virtual machine to power scalable, high-performance blockchain games like SonicX, enhancing speed and efficiency for web3 gaming. 

, enabling users to deposit and trade the token for a chance to win from a 5,000,000 SONIC prize pool. Additionally, 

, offering up to 30% APR rewards. Users can stake directly from their wallets, with airdrop staking coming soon. Staking supports ecosystem growth, unlocks features like governance and HyperGrid, and enhances the utility of the Sonic ecosystem.

Check Out the Latest Prices, Charts, and Data of 

Compound Finance has added Ethena's stablecoin USDe and Mantle's liquid staking token mETH to its platform, allowing them to be used as collateral. This follows a vote by Compound’s token holders. The integration reflects the growing use of liquid staking tokens (LSTs) in DeFi, contributing to significant growth in DeFi's total value locked. Additionally, Ethena's USDe has become one of the largest stablecoins, offering high returns, with staked USDe yielding competitive annual yields.

The Bitcoin Spot ETF market was closed yesterday in observance of a National Day of Mourning to honor former U.S. President Jimmy Carter.

Openledger, a decentralized blockchain platform for AI development, has 

 its Points Program. By running a free node and completing simple tasks, users can earn points to qualify for an upcoming airdrop. To participate, users need to sign up, set up the node, and engage in activities such as posting, liking, and retweeting Openledger content. They can also earn daily check-in rewards. The platform has raised $8M and is backed by major investors.

3.png

Compound Adds Ethena's USDe and Mantle's mETH to Platform, Boosting DeFi Growth

Crypto

Investing

Trading

Market cap in crypto is the monetary value of a coin multiplied by the amount of the currency that is in circulation. Is it helpful to measure the performance of a crypto? Learn more.

top-10-crypto-market-cap.png

 in crypto is the monetary value of a token or coin multiplied by its circulating supply (number of coins/tokens that have been mined or minted). 

It highlights the stability and value of an asset in the long term. 

While crypto is undeniably volatile, cryptocurrencies with a large market cap usually indicate that investments are more stable, as smaller cap cryptos are more susceptible to overall market sentiment. 

Let’s learn more about market capitalization and why it matters in your crypto journey. 

In the cryptocurrency market, the price alone can be a misleading indicator when determining a project’s true potential and value. Even the largest cap crypto, Bitcoin, may skyrocket or dip wildly based upon factors such as public enthusiasm, quick changes in 

Events such as these often impact the overall picture of a crypto’s ultimate potential. 

What savvy crypto investors like to see is a coin or token that possesses a relatively low supply but a high value. That said, crypto investors use the market cap as a critical indicator to compare the values of cryptocurrencies and determine their potential growth. 

Overall, high market cap assets usually translate to investors being more willing to pay for them.

For example, when crypto enthusiasts refer to the total supply of a cryptocurrency, they sometimes use the term 

 (FDV). A fully diluted market cap is calculated based on the value of all the coins of a cryptocurrency, not just the ones in circulation. One of the reasons Bitcoin (BTC) continues to do well is that its fully diluted supply is only 21 million. Currently, over one million of these coins are left to be mined, as the total circulating supply of BTC is more than 19 million. 

As a result, BTC is one of the best-performing crypto assets, driven by its scarcity and utility. When discussing a token’s supply, it’s critical to differentiate between FDV or circulating supply as the standard, since taking market capitalization into account allows one to see the macro picture for more informed investment decisions.

Just as you calculate a stock’s market cap by multiplying the current share price by the number of outstanding shares, you calculate the market cap of a cryptocurrency by multiplying the coin/token’s current market price by its circulating supply. 

For example, to get the current market capitalization of 

 (ADA) manually, we calculate as follows:

However, you can calculate a coin’s market cap in a more straightforward way. Simply use 

 or visit price aggregator portals, such as CoinGecko and CoinMarketCap, to find out the current market cap of most cryptocurrencies. 

The term “market cap” is often tossed around when identifying the top crypto to buy. Cryptocurrencies with a larger market cap are viewed by investors as being desirable. Since the onset of crypto in 2009, Bitcoin has remained the top one, based on market capitalization. 

In November 2021, Bitcoin hit its highest market cap of $1.23 trillion when 1 BTC was trading at $69,044. The increase in market cap was ten times greater, as compared to a similar period in 2013 when Bitcoin’s market cap was around $1.2 billion. Such an increase indicates growth in a coin’s ecosystem, further driven by a decreasing supply of available coins. 

Another top crypto that’s held the number two spot for a long time is 

. At its highest price of $4,878 in November 2021, Ethereum’s market cap was $571.67 billion. That figure was a tremendous increase from $80.34 million in 2015, when ETH’s price was at an all-time low (ATL) of $0.43. Ethereum’s ecosystem has grown tremendously over the years, leading to this incredible increase in its market cap. 

 (USDT), another top crypto in terms of market cap, is the leading 

 USDT has remained among the top three cryptos in terms of market cap for quite some time. Interestingly, despite a sharp decrease in Tether’s trading volume due to the 

, its market cap is almost at an all-time high of $83 billion as of June 2023. 

In terms of market capitalization, cryptocurrencies are classified into three types: large cap, medium cap, and small-cap cryptos. Let’s look at these categories and some of their cryptocurrencies. 

Large-cap cryptocurrencies are those that usually have a market cap exceeding $10 billion. These cryptocurrencies take the lion’s share of the cryptocurrency market capitalization. For those accustomed to investing in the regular stock market, purchasing large-cap cryptos is akin to buying blue-chip stocks. 

, these cryptocurrencies include Bitcoin, Ethereum, Tether, 

 (BNB). A new entrant into the large-cap class in 2023 is 

Although the cryptocurrency market is still considered volatile at this level, investors tend to classify large-cap cryptocurrencies as lower risks because they’re more established, having demonstrated sustainable growth and liquidity. 

They’re also somewhat less likely to plummet dramatically, even when a high volume of market investors pull out of their investments. 

However, anyone who’s been regularly following crypto markets can attest that nothing in crypto is impossible — case in point, 

Mid-cap cryptocurrencies have market caps that are between $1 billion and $10 billion. 

Most cryptos in this category are often on the move (with less than five years in the market), building highly innovative products, especially in the 

Notable new entrants that have stormed into this category soon after launch in 2023 are 

. Others that have been around for a while include 

. While still quite volatile and risky, they may provide you with good returns if you’ve managed to get in early. 

Small-cap cryptocurrencies have a market cap below the billion-dollar mark. They’re highly risky, but some hold potential for astronomical returns. Unfortunately, these are viewed as the most unstable cryptocurrencies, and many have track records involving 

Some crypto influencers are strong proponents of getting into small-cap cryptocurrencies before their market cap explodes. After all, every large-cap cryptocurrency started as a small cap at one point. A shrewd investment strategy always includes investigating a project’s growth potential, and monitoring its market capitalization and classification is an integral step. Other metrics to thoroughly review include a coin’s 

, the project team and other variables before buying in. 

Since market cap fluctuates along with a crypto’s price, receiving to-the-minute updates is essential. Most crypto aggregators and exchanges provide a real-time update of an asset’s market cap, price and circulating supply. 

 offer extensive updates on cryptocurrencies, and 

 offers live updates with the market’s 24-hour turnover rate.

 While every crypto investor has their own way of tracking these indicators, there are a multitude of resources available online. 

Taking market capitalization into consideration is a hallmark of more sophisticated investors.

For investors seeking to add another element to their investment strategies, weighted market cap assessments can be helpful. For example (using small numbers for ease of calculation), if the market cap of Crypto A is $20 and the market cap of Crypto B is $80, then the sum of both market caps is $100. 

A person investing $100 could allocate $20 of their funds to Crypto A and $80 to Crypto B. Adopted from the centralized finance (CeFi) world, weighted market capitalization strategy obviously favors investing in coins that wield a heftier market cap.

There are some who believe that these tactics don’t work as well in the crypto world as they do in traditional finance (TradFi), but many others do apply this investing strategy on a daily basis.

The primary factors that affect market capitalization are supply and price. A skyrocketing price causes the market cap to rise significantly. With the supply always playing a part of the equation, however, investors get a clearer picture of any crypto’s future when they eschew temporary excitement over prices and look at the market cap data.

As an investment tool, market cap can be beneficial — and as with any investing endeavor, those who want to participate in the crypto world need to use actual data. With cryptocurrency especially, it can be very tempting to make emotional decisions. 

The media hypes up each bull run of Bitcoin and other altcoins, but it tends not to cover prolonged bear markets with the same breathlessness. A crypto investor who includes market cap in their strategy uses the same principle as a pilot who checks their instrument panel at the first sign of trouble.

Instead of panicking and looking outside, a good pilot knows that checking the most current data will help them make effective decisions so they can soar into the sky once again.

Explained: What Is Crypto Market Cap (Capitalization)?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards