TOTAL2
What Is TOTAL2?
TOTAL2 is a cryptocurrency market index that measures the total market capitalization of all digital assets except Bitcoin. Created by TradingView, this metric provides traders and analysts with a way to track the performance of the broader market for alternative cryptocurrencies (altcoins), without Bitcoin’s influence on the overall numbers.
The index includes all cryptocurrencies from Ethereum down to the smallest market cap tokens, giving investors insight into how altcoins are performing as a collective group. Since Bitcoin often dominates total crypto market cap discussions due to its size, TOTAL2 helps isolate the performance of everything else in the crypto ecosystem.
TOTAL2 is particularly useful for understanding market dynamics during different phases of crypto cycles. When TOTAL2 is rising faster than Bitcoin’s market cap, it typically indicates an “altcoin season” where investors are rotating capital from Bitcoin into alternative cryptocurrencies. Conversely, when TOTAL2 is declining relative to Bitcoin, it suggests capital is flowing back to Bitcoin or out of crypto entirely.
How To Use TOTAL2?
Traders and analysts use TOTAL2 as a key indicator for understanding market sentiment and timing investment strategies. By comparing TOTAL2’s performance to Bitcoin’s market cap, they can identify periods when altcoins are outperforming or underperforming the largest cryptocurrency.
Technical analysts often apply chart analysis to TOTAL2 just like they would to individual cryptocurrencies, looking for support and resistance levels, trend lines, and pattern formations. These analyses help predict whether the altcoin market as a whole might be entering bullish or bearish phases.
TOTAL2 is also valuable for portfolio allocation decisions. Generally speaking, traders may aim to increase their exposure to altcoins when the index is showing strong upward momentum, and decrease altcoin exposure when the index is declining.
For even more granular analysis, traders can use TOTAL3, which removes both Bitcoin and Ethereum to track only the smaller altcoin market.
