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by hackingforfun 1649 days ago
Do you think that it's possible that as the market cap of crypto grows, the volatility goes down? I believe this applies to traditional markets as well. It just takes more money to sway the price.

Also if people see value in it, vs other assets, wouldn't they want to hold it, so wouldn't value be stored in it? Curious if you have any thoughts about that.

1 comments

The trouble with the usual measures of market cap, trading volume, etc. is that so much of it is faked. And lot of crypto is premined or is otherwise held by whales that don't have much use of it unless they find someone to dump their coins, and they have both means and motive to swing the market. So it's entirely possible that crypto market cap continues to "grow" but volatility just stay the same.

But otherwise, yeah, if there's enough people to make the whales look comparatively smaller, it may get more stable.