Adjusted TOTAL3 (TOTAL3 minus the stable coins)

How it works

Total3 is a market capitalization metric that aggregates the total value of cryptocurrencies in the market. It calculates the combined market value by summing the prices and circulating supplies of different cryptocurrencies.

However, this metric includes stablecoin supplies, which can artificially inflate the total market valuation. The inclusion of stablecoins creates a distorted view of the actual market dynamics, as these coins are designed to maintain a stable value and do not represent true market growth or investment potential

Why it may be useful

Understanding the limitations of Total3 is crucial for investors seeking an accurate representation of the cryptocurrency market. By recognizing that stablecoin supply can skew market cap calculations, traders can make more informed decisions.

The metric's potential overestimation can lead to misinterpretation of market trends and potential investment opportunities. Savvy investors should look beyond Total3 and analyze individual cryptocurrency performances and market segments separately

When to explore it

Total3 should be used cautiously and always in conjunction with other market analysis tools. It is most useful when comparing overall market trends but should not be relied upon as a sole indicator of market health.

Investors should pay special attention to metrics that exclude stablecoin supply for a more accurate assessment. The metric can provide a broad overview of market size, but detailed analysis requires deeper investigation into individual cryptocurrency performances

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