The failure of the market capitalization is gaining publicity for being a poor metric in order to measure the worth the crypto-currency. This however must not stop from being used as tool for generating biased market by the traders.
The market price of the crypto-currency multiplied by the supply circulating is the function of the market capitalization of the crypto-currency.
The highly speculative asset that the banks globally who are adopting blockchain and distributed ledger technology (DLT) are considering is the crypto-currency. The trend of an individual crypto-currency is not going to deviate much as the entire market relies on this one factor.
This means that the two are strongly correlated i.e. if even one of it increases or decreases in its worth, the others will follow it blindly.
For investors who trade for longer periods of time and are not concerned about the fluctuations taking place on a daily basis can gain the insightful by knowing the total market capitalization. This will help them in analyzing the trends of the market in long term.
Source: CoinDesk, CoinVigilance
