I mean, even doge hit $2B market cap. And it's the parody cryptocoin.

it's a parody cryptocoin with faster transactions and cheaper fees than the market leader..

Because it is far less used. The techno behind it is the same as bitcoin (with different configuration).

No, dogecoin theoretically caps out at ~30 transactions a second. Bitcoin caps out at ~7 tx/s. This bottleneck increases demand for tx completion and raises tx fees for bitcoin.

The Dogecoin network can handle 4.5x more traffic than the Bitcoin network, meaning the satire cryptocurrency is a better technology at being a currency than bitcoin is.

Of course, since the Dogecoin client software hasn't been updated in the past two years it lacks the rather substantial performance optimisations that Bitcoin has developed over that time period, so it's not clear how well it would actually cope if it ever had to handle a transaction rate anywhere near its theoretical limit. (Or, for that matter, if miners are actually willing to process that many transactions.)

Sure, but there's no reason to believe that the Dogecoin network is not able to handle 30 tx/s.

It was intended as a parody but it is as legit a cryptocoin as any other, right?

Yes. This is also why Market Cap is a problematic metric in the cryptocurrency space.

What's wrong with it? Seems like a perfectly normal metric for coins just like for stocks and bonds.

Because I can create a cryptocoin with 2B tokens, sell one coin to friend for $100 and have a $200B market cap. It's got nothing to do with reality. Anyone (literally) can create a $200B market cap coin by forking a github repo.

That's just how market caps work in general. The same argument has been made for startup valuations. It's not a problem with the metric at all and doesn't hold for the case being discussed as actual market based transactions in enough volume are happening. It's not just a made up number. Here's an argument that Facebook was not worth 33B$ in 2010 because only 3% of its value had ever been transacted:

https://signalvnoise.com/posts/2585-facebook-is-not-worth-33...

It's worth almost 17 times more than that now. Market cap is not a perfect metric because it doesn't capture the depth of the market willing to buy but coins don't make that any different.

No one measures the marketcap of gold or soybeans. When was the last time someone mentioned the marketcap of the USD?

It's an absurd metric made worse by the fact that more coins are issued every 5 mins. If price remains the same virtually all coins will go up in marketcap regardless.

What company issues new shares every single day?

I'm just guessing that it's because it's not a stock or a bond. I don't ever hear what the market cap is for the yen, or any other currency.

That's because they can always print more. There's no cap.

That's not what a market cap means. There are cryptocurrencies too that have no limit on the number of produced coins. Market cap means market capitalization.

"Cap" doesn't mean what you're thinking in this context :)

With stocks, the market cap is the total valuation of the company. Companies can have valuations because they can be bought and sold - either when they're private, like when Google buys a startup, or when they're publicly traded, like when Microsoft bought LinkedIn.

The valuation of a company is determined based on its financial performance and, ultimately, by its ability to generate cash for shareholders. (Keep in mind that, unlike cryptocurrencies, companies generate profit for their owners just from their daily operations).

That overall valuation drives share price. Equity investors consider how valuable they think a company will be in the future and back into a price they're willing to pay per share from there.

Market cap is a meaningless metric for crypto since nobody would ever want to buy all the Bitcoin in the world and hold it for ten years. What would be the point? It won't generate cash flow during those ten years, and it almost certainly won't be worth more in ten years - with one person hoarding all the Bitcoin in the world nobody could use it for any transactions and people would lose interest.

Case in point, nobody talks about the market cap for USD or other currencies. It just doesn't make sense for assets that are only valuable as a medium of exchange.