Its almost a unanimity that bitconnect is a ponzi-scheme but it still there going up and alive. Of course other cryptos are not ponzi-schemes (i think we finally left that discussion behind), but the fact that a ponzi-scheme survives for so long shows that price-setting processes are biased in this moment. We shouldnt take market caps and prices too serious yet
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I agree with you in the sense the market cap and prices shouldn’t be taken at face value due to the huge number of speculators in the market. However i do think that they are useful to get a sense of how the ecosystem and the adoption of cryptocurrencies is advancing.
If you want your currency to have a huge market cap, then you lock up the supply on the open market by doing things like making huge node fee requirements (Dash), or doing a huge premine and not selling any of it, or Bitconnect has this interest payment thing that incentivises people hold bitconnect for a specified period of time like a CD at a bank. Dash at least has a limited supply monetary policy, so even though it’s probably temporarily overpriced for market demand, it will likely grow into it’s price.
If you want to spot which market caps are over-hyped, a good place to look is at the volume of trades on the average day. If the Average Volume/Cap ratio is lower than Bitcoin then it’s probably over-hyped. Since Bitcoin is the most well-known, and most hyped coin there is.
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