Why should cryptocurrency traders know what TOTAL2 is? The cryptocurrency market is one of the most dynamic and volatile in the financial world. Every day billions of dollars are created, exchanged and destroyed in the form of digital tokens that represent different projects, protocols and platforms based on blockchain technology. However, not all cryptocurrencies have the same weight or the same impact on the market. There is one that stands out above all the others: Bitcoin.
Bitcoin is the first and most popular cryptocurrency in the world. It was created in 2009 by an anonymous person or group under the pseudonym Satoshi Nakamoto, with the aim of creating a decentralized, secure and scarce electronic money system. Since then, Bitcoin has captured the attention and interest of millions of people, companies and institutions, who see in this innovation an opportunity to transform the financial and social world.
Bitcoin has several characteristics that make it unique and valuable. Among them, its offer limited to 21 million units, its resistance to censorship and manipulation, its transparency and its security stand out. These characteristics have given Bitcoin a position of leadership and dominance in the cryptocurrency market, which is reflected in its price and market capitalization.
The market capitalization of a cryptocurrency is the total value of all circulating units of that cryptocurrency. It is calculated by multiplying the price of each unit by the number of units in circulation. For example, if a cryptocurrency is priced at $10 and there are 100 million units in circulation, its market capitalization is $1 billion.
Bitcoin's market capitalization is the highest of all cryptocurrencies. Currently, it exceeds $900 billion, representing more than 40% of the total cryptocurrency market. This means that Bitcoin has a great influence on the behavior and trend of the market, and that it often drags other cryptocurrencies with it, both up and down.
However, Bitcoin is not the only cryptocurrency that exists. There are thousands of alternative cryptocurrencies to Bitcoin, which are known as altcoins. These altcoins have different purposes, features and technologies, which make them more or less attractive to investors and users. Some of the most popular altcoins are Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Monero (XMR), Solana (SOL), among many others, also the occasional MEME (but we better leave that topic for another article 😀😎).
Altcoins have a smaller market capitalization than Bitcoin, but they also have greater growth potential. This is because they are more innovative, more flexible and more adaptable to the needs and demands of the market. Additionally, some altcoins have a negative correlation with Bitcoin, meaning that when Bitcoin goes down, they go up, and vice versa. This offers an opportunity to diversify the portfolio and take advantage of market fluctuations.
To measure the size and health of the altcoin market, there is an indicator called TOTAL2, which shows the market capitalization of all cryptocurrencies except Bitcoin. It is a way of looking at the market without taking into account the dominant effect of Bitcoin, which can distort reality and hide opportunities. TOTAL2 is calculated by adding the market value of all cryptocurrencies other than Bitcoin and is expressed in US dollars. You can view the TOTAL2 chart by registering on TradingView or go directly to https://www.tradingview.com/symbols/TOTAL2.
At the time of writing this article, TOTAL2 was maintaining an upward trend, which indicates that the altcoin market is growing and that there is a growing interest and demand for these cryptocurrencies. Some analysts use TOTAL2 to predict the behavior of altcoins and to identify potential investment opportunities. For example, if TOTAL2 breaks a resistance or support level, it may indicate that altcoins are entering an expansion or contraction phase, respectively.
For these reasons, cryptocurrency traders should know what TOTAL2 is and how to use it to analyze the market since it is a tool that allows you to have a broader and more complete vision of the crypto ecosystem, without getting carried away by the Bitcoin effect. This indicator helps detect trends, patterns and signals that can anticipate the movements of altcoins in order to make better investment decisions, allowing you to take full advantage of the potential of alternative cryptocurrencies to Bitcoin.
PS: My favorite cryptocurrencies (by project) for long-term investments: BTC, ETH, LTC, BCH, ETC, TRX, ROSE, XRP, LINK, ADA, DOT, XMR, SOL, MATIC. Which are yours?
