TOTAL3
What Is TOTAL3?
TOTAL3 is a cryptocurrency market index that measures the total market capitalization of all digital assets except Bitcoin and Ethereum. Created by TradingView, this metric provides traders and analysts with a way to track the performance of smaller alternative cryptocurrencies (altcoins) without the influence of the two largest cryptocurrencies on the overall numbers.
The index includes all cryptocurrencies from the third-largest market cap token down to the smallest projects, giving investors insight into how mid-cap and small-cap altcoins are performing as a collective group. Since Bitcoin and Ethereum together often represent a significant portion of the total crypto market cap, TOTAL3 helps isolate the performance of everything else in the altcoin ecosystem. TOTAL3 works alongside TOTAL2, which excludes only Bitcoin, to give traders a layered view of different segments within the altcoin market.
TOTAL3 is particularly useful for identifying trends in the broader altcoin market beyond the major players. When TOTAL3 is rising while TOTAL2 remains flat, it suggests that smaller altcoins are outperforming Ethereum and gaining market share. This can indicate increased risk appetite among investors who are moving down the market cap ladder to find higher potential returns in smaller projects.
How To Use TOTAL3?
Traders and analysts use TOTAL3 as an indicator for understanding sentiment toward smaller altcoins and timing investments in mid-cap and small-cap cryptocurrencies. By comparing TOTAL3’s performance to both Bitcoin and Ethereum’s market caps, they can identify periods when smaller altcoins are experiencing their own independent bull or bear cycles.
Technical analysts often apply chart analysis to TOTAL3 to identify support and resistance levels, trend lines, and pattern formations specific to the smaller altcoin segment. These analyses help predict whether the mid-cap and small-cap altcoin markets might be outperforming or underperforming relative to larger cryptocurrencies.
TOTAL3 is also valuable for portfolio allocation decisions within the altcoin space. Generally speaking, traders may increase their exposure to smaller altcoins when TOTAL3 shows strong upward momentum relative to TOTAL2, suggesting that capital is flowing into higher-risk, higher-reward projects. Conversely, when TOTAL3 is underperforming, it may signal a shift toward larger, more established altcoins or a more general low-risk sentiment in the crypto market.
