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Market Cap Formula:
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Market capitalization (market cap) is a financial metric that represents the total market value of a cryptocurrency's circulating supply. It is calculated by multiplying the current price of a single coin by the total number of coins in circulation.
The calculator uses the market cap formula:
Where:
Explanation: Market cap provides a quick way to assess the relative size and value of a cryptocurrency compared to others in the market.
Details: Market cap is a crucial metric for investors to evaluate a cryptocurrency's dominance, stability, and growth potential in the market. It helps in comparing different cryptocurrencies and making informed investment decisions.
Tips: Enter the current price in USD and the circulating supply in coins. Both values must be positive numbers for accurate calculation.
Q1: What's the difference between market cap and fully diluted market cap?
A: Market cap uses circulating supply, while fully diluted market cap uses maximum supply. Circulating supply represents coins currently available, while maximum supply includes all coins that will ever exist.
Q2: Why is market cap important for cryptocurrency ranking?
A: Market cap is the primary metric used to rank cryptocurrencies. Larger market caps generally indicate more established, stable projects with higher liquidity.
Q3: How often should market cap be calculated?
A: Market cap should be calculated frequently as cryptocurrency prices are highly volatile and circulating supplies can change due to mining, staking, or token burns.
Q4: Can market cap be manipulated?
A: While difficult to manipulate significantly for large-cap cryptocurrencies, low-cap coins can be susceptible to price manipulation through wash trading or artificial price inflation.
Q5: What are the market cap categories in crypto?
A: Generally categorized as: Large-cap ($10B+), Mid-cap ($1B-$10B), Small-cap ($100M-$1B), and Micro-cap (under $100M). These categories help investors assess risk and potential returns.