How Does This Cost Compare to the Total Market Capitalization of the Coin?
For smaller coins, the hourly cost of a 51% attack can be a tiny fraction of the coin’s total market capitalization. This severe disparity is what makes the attack economically viable.
An attacker might spend $5,000 per hour to steal $100,000 worth of coins via double-spending. The low attack cost relative to the potential theft value, which is tied to the market cap, highlights the coin’s security vulnerability.
Glossar
Block Reward Influence
Incentive ⎊ Block Reward Influence quantifies the economic effect of newly minted cryptocurrency, combined with transaction fees, on the behavior of network validators or miners.
Total Market Capitalization
Valuation ⎊ Total Market Capitalization, within cryptocurrency, options, and derivatives, represents the aggregate value of all outstanding units ⎊ coins, tokens, shares, or contracts ⎊ of an asset class or specific market segment.
Market Capitalization
Valuation ⎊ This metric represents the total notional value of all circulating units of a cryptocurrency, calculated by multiplying the current spot price by the total supply outstanding, serving as the primary measure of an asset's overall economic scale within the market.