The Market Capitalization of a coin is a measure of the market value of the coin. The market value is the price at which the coin would trade if supply and demand for it were mutually dependant. For most coins, this is simply calculated as price * circulating_supply.

A Coin’s Market Cap is a widely used metric that helps compare different cryptocurrencies to each other. The Market Cap of a coin can be found by multiplying its price with its circulating supply. It is an important metric to consider when researching altcoins or investing in them since it provides an idea of the market size and valuation of the coin.

A coin’s market cap, or “market capitalization,” is the total value of a cryptocurrency. In order to calculate a coin’s market cap, you must multiply the current price by the circulating supply of coins. This number can be found on any major cryptocurrency exchange in either the coin summary or markets section.

The formula for calculating a coin’s market cap is as follows:

Current Price x Circulating Supply = Market Cap

For example, if Bitcoin (BTC) is currently trading at $8,000 and there are 16,700,000 BTC circulating on the market, then Bitcoin’s market cap is equal to $134.16 billion:

8,000 x 16,700,000 = 134.16 billion

Knowing how to calculate a coin’s market cap is essential since it allows you to compare crypto assets based on their total value. For example, you can use market cap to determine which coins have the highest value and which have the lowest. You can also use this information to see whether or not a coin is overvalued (i.e., its price doesn’t align with its market cap).

The market capitalization of a cryptocurrency is calculated by multiplying the number of coins or tokens in existence by its current price.

The market cap of a coin is an important metric to consider as it shows us the size, value and potential growth of a project.

A coin’s market cap is an important metric for traders. It can help them to decide whether to invest in a particular project or not. A market cap that increases over time can be an indicator that a coin is undervalued, and it can also show us how much interest there is in the project from investors.

Every crypto trader has heard the term “market cap”. After all, it’s one of the most important metrics to determine the value of a coin. But what is market cap? And why is it so important?

Market capitalization, or market cap, is a term derived from traditional stock markets. It’s used to describe the total market value of the outstanding shares of a company. The market cap calculation is simple: you take the share price and multiply it with the total number of shares outstanding. So if a company has 1 million shares at $10 each, its market cap is 10 million dollars.

Market capitalization is one of the most important and widely used tools to gauge cryptocurrency price movements. It is usually listed alongside price on every exchange, wallet, and data provider.

Yet, few people know exactly how market cap is calculated, what it represents, and why it matters.

The following article will explain everything you need to know about market cap. We’ll also touch upon some of its limitations and drawbacks, as well as discuss the alternative ways to value cryptocurrencies.

What Is Market Cap?

Market capitalization (market cap) is the total value of a cryptocurrency at any given time. It is calculated by multiplying a coin’s current price by its circulating supply. For example:

1 BTC = $5,000 * 17 million coins = $85 billion market cap

If you’re following crypto news closely, you might have seen that Bitcoin’s market cap exceeded $100 billion in November 2017 ($20 billion in June 2017). Ethereum also experienced an explosive growth from around $2 billion at the beginning of 2017 to almost $90 billion in January 2018 (down to $56 billion at the time of writing).

Cryptocurrencies are often referred to as coins or tokens. However, they are not like physical coins that you can hold in your hand and place in a piggy bank to save up for a rainy day. Instead, cryptos are digital assets that can be encrypted with a public key and private key.

When you send someone a crypto coin, it’s actually the private keys that certify ownership and allow the user to send it off as payment. The public key is also used to verify transactions and generate new public-private key pairs.

One of the most important things to know about cryptocurrencies is their market cap ranking, which is essentially the value of all of the coins combined at any given time. To calculate the market cap of a cryptocurrency, you simply multiply its supply by the price per coin (price x supply = market cap).

For example, if there were 10 million coins on the market and each one was being sold for $100 USD, then its total market capitalization would be $1 billion USD.

You’ve heard the term “market capitalization” or “market cap” tossed around in financial news. You may have seen it used when talking about stocks, like Apple (AAPL) or Tesla (TSLA). But what exactly is market cap? And why do cryptocurrency investors care so much about it? We’ll answer these questions and more in this article.

What is market capitalization?

Market capitalization—or “market cap” for short—is a metric that tells us how much a company is worth. To calculate market cap, you simply take the current price of a company’s stock and multiply it by the total number of shares outstanding.

For example, let’s say there is a company called ABC Laundry Services Incorporated that has 10 million shares outstanding. If each share is currently trading at $24.00, then ABC Laundry Services would have a market cap of $240 million:

Market Capitalization = Price Per Share x Number of Shares Outstanding

$24 x 10,000,000 = $240,000,000

Note: The total number of shares outstanding includes any shares that are currently held by insiders (company executives and employees) or institutions