When considering a coin or token to invest in, it is important to look at the market cap and not just the total supply. It is a common trick (especially within meme based tokens) to make a token supply in the trillions or even quadrillions to give the appearance that you could have a significant amount in the near future. The mental calculation that people do is normally along the lines of “if this token gets to $1 then I have X amount of money, then I’ll have…”. The reality is that for many of these high supply tokens, it is simple unrealistic for them to get anywhere close to the market caps required for this.
One website that we have seen which helps to give an understanding of market caps is 8marketcap.com. On this site, you can view the market caps of assets, stocks ETFs and cryptos. In addition to this you can compare two different market caps to see how realistic such a price increase is. For example, you could compare the market cap of two cryptos that are similar in some ways to see the potential for growth.
In this example you can see that for Ethereum to have the same market cap as Bitcoin, it is 1.94x away or approximately double the price would mean the market caps would be equal. This is because the total supply of Ethereum is much larger than Bitcoin and the market cap is price x total supply.
Give it a try and give yourself a better idea about the potential for growth in your assets.
