# How can a X-coin market cap go down while its value goes up?

Quoting Wikipedia, Market cap is given by the formula

``````MC = N × P
where N is the number of shares outstanding, and P is the closing price per share.
``````

In the specific case of a crypto currency, one could assume that `N` is the amount of coins in circulation and `P` its current value.

How can the image below happen, given that Zcash, being a fork of Bitcoin, cannot (unless I missed something very important) be destroyed, thus `N` can only grow.

Source: coinmarketcap.com, a few minutes before this post

• Did you notice in the graph that price is measured in BTC, while market cap is measured in dollars? Your units are inconsistent. Everything in the picture would be completely consistent if the price of BTC (in dollars) fell during the relevant time span. Jan 11, 2017 at 15:09
• @NateEldredge: Thanks, I had missed that. I've updated my answer.
– Murch
Jan 11, 2017 at 16:05

## 1 Answer

As Nate Eldredge pointed out, the chart you're looking at is denominated in `BTC`, while the market cap is denominated in `USD`.

If you look at the chart below, you'll see that the price in `USD` (green) behaves exactly as you describe in your question.

On the other hand, the price in `BTC` (orange) does not behave like you expected, because it combines the price movement of Bitcoin with the price movement Zcash respective to the Market Cap denominated in `USD` (blue).

• It was so obvious.. Thanks for saving both the website and elementary maths!
– PPC
Jan 11, 2017 at 22:05