Market value of cryptography, loan protocols (LP) and open interest
The cryptocurrency world has grown extremely in recent years and there are many new players on the market. It is not just about understanding the latest trends and techniques; You also need to understand based on these markets. In this article, we deepen three main indicators: cryptocurrency market value (market ceilings), lending protocols (LPS) and open interest.
Crypto -Market value (Market ceiling)
Market value is a decisive measure that measures the total value of all remaining coins in the asset class. This reflects the total amount of cryptocurrencies for individual investors, institutions and other market participants. To calculate the market ceiling, you need to know the current price of each coin and the total number of movement coins.
Market value is a widely used indicator that can help investors understand the size and liquidity of the active class. Higher market ceilings show greater demand for property that can increase prices. In contrast, if the asset has fewer investors, the market ceiling can be reduced.
Here is an example: assuming Bitcoin (BTC) is a market value is USD 1 trillion. This means that about 7.5 million Bitcoins are now great and the value of each coin is about $ 14,000 at current prices.
Protocol quote (LPS)
Loan protocols are digital platforms designed to facilitate lending of peers in cryptocurrency. These protocols allow users to borrow their cryptocurrencies for others, and in return they get interest payments for loans. Citing LPS plays an important role in providing liquidity to the market and providing a decentralized financial application (DEFI) applications.
Popular loan protocols are Makerdaon Dai, combination and uniswap. Each protocol has its own unique features, such as interest, loan terms and collateral requirements. For example, the combination offers a fixed 5%fixed interest rate when borrowers get interest fees in Dai or other fiat currencies.
open interest
The open interest (OI) measures the number of remaining contracts that are not concluded. This reflects the overall value of open stations owned by all market parties that have not yet fulfilled their stores. Open interest is an important indicator of market dynamics in market dynamics as it shows the size and operation of the whole market.
Open interest can be calculated using a variety of methods including:
1
Total : This method involves increasing the remaining contracts for calculating open interest.
Index
For example, if the market has 100 Bitcoin funds with different aging days and 50, and 50 is closed, would have an open percentage of $ 1 million (100-5).
Conclusion
In summary, the understanding of the market value of Krypton, the loan protocols and open interest are essential for investors trying to navigate the cryptocurrency world. The market cap provides a snapshot of active size and liquidity, while quoting protocols make peer -to -peer loans and defining applications. The open interest is the indicator of market activities and dynamics.
As the crypto landscape continues to develop, it is necessary to update these key indicators in order to make decisions based on information. Remember that investments in cryptocurrencies are associated with natural risks, and before entering the market it is necessary to make two care.
References
- Investopedia: “Market value of cryptography”
- CoinMarketcap: “Loan Protocols (LPS)”
- Connection: “With the Liquidity Protokit”