Although the total crypto market cap serves as a marker for popularity, influence and integration, there is another important takeaway from its volatility. The obvious differences in how major exchanges produce their number points to just how much room there is in the world of crypto for an authoritative standard. Although the prevailing buzzword around crypto is decentralization, this is not what the market seems to be doing.
Most cryptocurrencies, including major currencies like Litecoin and Ripple, are far less decentralized than they let on. The emotionless technology behind crypto certainly has the potential for decentralization. The people who control it — that’s a different story altogether. The psychology of major developers and users of crypto seems to default to centralization. Most people flock to just a few exchanges. Most people trade only the top coins. And with traditional banks and institutional investors entering the space with big money, many retail investors are preparing to exit crypto and move right back into fiat once crypto becomes “worth” more.
Where will the crypto market go from here? The market cap may give us technical indicators, but it is also quite political. Pay close attention to it to determine how people relate to finances in the future.