Bitcoin's market capitalization has recorded its new highest value.
In fact, according to data from CoinMarketCap.com, in the last 24 hours it has reached $ 339 billion, stabilizing around 329 billion dollars.
The previous record was set on December 17, 2017, in the middle of a speculative bubble, when reached 333 billion dollars.
At that time the price was above $ 19,000, while the new record of $ 339,000 million was hit thanks to a price of $ 18,300.
It is worth noting that the market capitalization is simply the product that is obtained by multiplying the value of the unique token by the number of tokens in circulation.
In December 2017, the number of BTC tokens in circulation was approximately 16.7 million, while now there are more than 18.5 million.
Therefore, although the price of these tokens is lower than the previous record, the current market capitalization is higher due to the most tokens in circulation.
What does the market capitalization of Bitcoin indicate?
The value of the individual token price is not relevant in itself. Or rather, it is the variation in prices that is very relevant, especially for those who buy or sell, but the value of the price in absolute terms is not significant.
Instead, market capitalization is a good estimate of the true market value of a cryptocurrency, so much so that it is also used to make comparisons between the various crypto assets.
For example, bitcoin is not the cryptocurrency with the highest value per token, in fact the price of yearn.finance's YFI token is above $ 22,000. But considering that there are only around 30,000 YFI tokens in circulation, its market capitalization is relatively low ($ 600 million).
Therefore, it is wrong to compare the prices of individual tokens, while it is correct to compare market capitalizations, in fact, Bitcoin is worth 548 times more than YFI.
Another example is XRP (Ripple), whose price is $ 0.29. Despite this, it is the fourth cryptocurrency in the world in terms of market capitalization, with more than 13 billion dollars, while for example LINK (Chainlink), which is in fifth place, is priced at $ 13.5 but has a market capitalization of 5.3. billion.
Therefore, the fact that Bitcoin has set a new all-time high for its market capitalization means that overall, this cryptocurrency has never been more valuable than it is now in its entire historyAlthough for BTC holders it certainly matters more that the price is still below the all-time high of December 17, 2017.