Business & Finance

Volatility is Inevitable With Such a Small Market Cap, Suggests Sam Ball

According to the investor, crypto enthusiast and analyst, Sam Ball the market hasn’t yet escaped the volatility factor. It has somewhat acquired the stable state for some while now, but to say that the volatility has escaped might not be the right statement to make as of yet.

The coin market has shown signs of stability for almost a month now. The currencies haven’t shown significant plunges and surges for a while now which made the analysts, investors and enthusiasts of crypto predict that the market has finally got rid of the volatility. The info-graphics from coinmarketcap show the stable behavior of the market for the past few weeks,

src: coinmarketcap

According to the chart, the market has shown stable valuations since 17th of October last month. But it can’t be inferred from the statistics that the volatility has escaped the market according to the crypto investor and enthusiast Sam Ball. Upon inquiry on the topic if volatility was leaving the market he told BlockPublisher,

Absolutely not when total market cap is still so small, volatility inevitable.

The market cap has to reach a reasonable value to be able to reach the ‘stable’ status.

Diving into the individual cryptocurencies, he shared his views with BlockPublisher regarding the best metric to analyze cryptocurrencies. He stated,

Best metric is number of real world users in my opinion.

Similarly, Mati Greenspan recently told BlockPublisher that market capitalization won’t actually be the best metric to rank cryptocurrencies, like the way coinmarketcap and other platforms rate them. Having a similar opinion was Thomas Power, who thought that it was better if the crypto assets were ranked on the basis of trading volumes, the higher the trading volume, the better.

The points raised by these analysts and enthusiasts somewhat make sense because the metrics other than the market cap, like trading volume actually point towards the crypto adoption and usage.

Shehryar Hasan

Performing artist, guitarist and sub-editor at BlockPublisher. Shehryar is an electrical engineer and blockchain enthusiast. He holds investments in bitcoin, ethereum, OST, TRX and Ripple. Email: shehryar@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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