Analysis Of Influencing Factors Of Cryptocurrencies Market Capitalization

In recent years,with the birth and development of Bitcoin,more and more cryptocurrencies using blockchain technology have emerged.In 2017,there was an explosive growth in the market value,trading volume and quantity of cryptocurrencies.As of the end of 2017,there are a total of 1,335 cryptocurrencies with a total market capitalization of 572.5 billion U.S.dollars.Cryptocurrency,as an emerging economic phenomenon,is receiving more and more attention and research.In this paper,I take the cryptocurrencies market data from 2014 to 2017 as the research object,and analyze the market capitalization of cryptocurrencies.The influencing factors of cryptocurrencies market capitalization are divided into internal and external factors.In this paper,I find that there is a significant positive correlation between the public attention and cryptocurrencies market capitalization,and the elasticity of cryptocurrencies market capitalization to public attention is calculated by establishing the model.By establishing a VAR model and analyzing the data of cryptocurrencies market capitalization,trading volume,Bitcoin,Ethereum and USDT,I find that the positive changes in trading volume,prices of Bitcoin and Ethereum are related to market capitalization of cryptocurrencies.However,the trading volume of USDT is inversely related to the cryptocurrencies market capitalization.The price of Bitcoin is still the most important factor that affects the market capitalization of cryptocurrencies.This article analyzes the case of Ethereum.In the end,this paper puts forward some policy suggestions about cryptocurrency.