How Does the Market Capitalization of a Coin Relate to Its Economic Security? ⎊ Path

How Does the Market Capitalization of a Coin Relate to Its Economic Security?

A coin's market capitalization is directly related to its economic security, especially in PoS systems. A higher market cap means the cost for an attacker to acquire 51% of the staked coins is proportionally higher.

This makes the 51% attack significantly more expensive and less feasible. Therefore, market cap is a key indicator of the network's resilience against economic attacks.

How Does the Cost of a 51% Attack Change with the Coin’s Market Capitalization?

How Does Proof-of-Stake Inherently Defend against a Sybil Attack?

How Does the Cost of a 51 Percent Attack Relate to the Network’s Market Capitalization?

Does the Cost of a 51% Attack Change Based on the Coin’s Market Capitalization?

What Is the “Slashing” Mechanism in Proof-of-Stake and How Does It Deter Attacks?

How Does the Cost of Attack Relate to the Market Capitalization of the Native Token?

What Is the Relationship between a Coin’s Market Capitalization and Its Security Cost?

What Is the Primary Difference between a PoW and a Proof-of-Stake (PoS) 51% Attack?

Glossar

Capitalization

Equity ⎊ In cryptocurrency and derivatives, capitalization transcends the conventional financial definition, representing the aggregate market value of circulating tokens or underlying assets.

Market Capitalization

Capital ⎊ The market capitalization of a cryptocurrency, within the context of derivatives, represents the aggregate value assigned to all circulating tokens, providing a foundational benchmark for assessing relative size and liquidity.