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Looking at the historical data of Loopring, I noticed something strange.
On Jan 4, Market cap was $163,805,000 and closed price was $0.65. That means, circulating supply was around 252M.
On Jan 5, closed price increased to $1.03 BUT market cap decreased to $41,138,000. And this means, circulating supply went down to around 39M.
Shouldn't Market Cap increase when price increases?
Can circulating supply decrease? or is there something that I am missing?
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Shouldn't Market Cap increase when price increases?
It depends. MarketCap = circulating supply x unit price
Giving : MC=10, CS=10, UP=1
Example of an increase in MC : MC=20, CS=10, UP=2
Example of steady MC : MC=10, CS=20, UP=0.5
Example of a decrease in MC : MC=5, CS=10, UP=0.5
Can circulating supply decrease?
Yes circulating supply decrease, especially in centralized coins(controlled by individuals or corporations)
Example : Ripple decided to lock a huge number for XRP in mid 2017 which lead to unit price increase
BYW, I noticed similar change in other coins as well – DeveScie – 2018-01-15T14:39:06.207
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Is just CMC using the wrong data/fucked up somewhere/ forgot a zero. Example the real Circulating Supply is 734,089,390 but CMC shows 561,167,415. If you want to know the "real" market cap. Multiply the current price with the correct Circulating Supply.
– Chak – 2018-01-15T16:22:29.067