Only the important market cap indicators: Understand what Total 1, Total 2, and Total 3 mean in the Crypto market

When entering the cryptocurrency market, one of the fundamental yet extremely important pieces of knowledge is understanding market capitalization indicators. The three indices—Total 1, Total 2, Total 3—are the foundation that helps you interpret market trends and seize trading opportunities. This article will explain these indices in detail and why they are important to you.

What do Total 1, Total 2, and Total 3 mean?

To answer the question “what is total,” we need to understand that these are different measures of market capitalization:

Total 1 indicates the total market capitalization of the entire cryptocurrency market. It includes all digital assets, from Bitcoin to the smallest altcoins. When Total 1 increases, it shows the overall market is growing.

Total 2 excludes Bitcoin from the calculation and measures only the market cap of all other coins. This index is extremely useful for evaluating the performance of Ethereum and altcoins. When Total 2 rises sharply while Bitcoin remains stable, it often signals that Altcoin Season is underway.

Total 3 goes further by excluding both Bitcoin and Ethereum, measuring only the market cap of the remaining altcoins. This is the most nuanced indicator, reflecting the true strength of the entire altcoin ecosystem. When Total 3 breaks its all-time high (ATH), it is a strong sign of a lively altcoin season.

Capital accumulation through market cycles

To better understand the importance of these indices, let’s look at how Total 2 developed through key phases of cryptocurrency history.

2015 - 2017 Cycle: The First Altcoin Boom

During this period, altcoin market cap hit a low of $3.9 billion. However, the market did not stop there. After 784 days of accumulation and continuous growth, Total 2 skyrocketed to $474 billion in January 2018.

What does this mean? Total 2 increased by 121,538 times from its lowest point, or in other words, it grew 3,731 times from the previous high before breaking out of the accumulation zone. This was the first unexpected explosion of the altcoin market.

2019 - 2021 Cycle: The Second Major Bull Run

After a downturn, the market started again from $36 billion. Over 721 days of accumulation, Total 2 gradually increased until reaching a record high of $1.707 trillion (nearly 1.7 trillion) in November 2021.

Although the increase was not as high as the previous cycle—Total 2 rose 47.41 times from its lowest point—it still grew 14.3 times from the breakout level. This impressive figure demonstrated the strength of altcoins during this period.

2023 - 2025 Cycle and Lessons from the Past

Starting from a low of $427 billion, Total 2 is currently in an accumulation phase. Technical analysts observe that if history repeats itself according to the pattern, the market could break resistance levels and enter a strong growth phase when the accumulation period lasts similar to previous cycles (around 700-800 days).

Three market cycles and lessons from history

When comparing these three cycles, a clear pattern emerges: each accumulation phase lasts about 700-800 days before a major breakout. This is not a coincidence but reflects market psychology cycles and capital flow trends.

Historical data shows that altcoins can increase from 40 to 120 times in a full cycle. While not every cycle follows this pattern exactly, the overall trend is clear: longer cycles tend to lead to more explosive breakouts.

Why do you need to understand these indices?

Understanding what Total 1, Total 2, and Total 3 are is not just theoretical knowledge but has practical significance. When Total 2 and Total 3 break their ATHs, it signals that Altcoin Season is beginning, and altcoin investors are ready for a strong rally.

Conversely, when these indices are in accumulation, it’s time to prepare your strategy, accumulate positions, and wait for opportunities. Recognizing the right moment when the market is about to enter a growth phase can make the difference between significant profits and missed chances.

Smart traders don’t just monitor individual altcoin prices but also keep a close eye on these overall market capitalization indicators. This is how they identify upcoming Altcoin Seasons and prepare for the next bull run.