Many people only look at the price of a coin and think it’s cheap just because it costs 0.000000001. But in reality, what really matters is the market cap, which is the total value of the project in the market.
The calculation is simple. Take the price of the coin and multiply it by the total amount in circulation. This gives you the market cap.
For example, if a coin has a price of 0.000000001 and has 20 trillion units in circulation, the market cap is already 20 million dollars.
Now, if someone turns around and says that this coin will reach 1 dollar... That would be a market cap of 20 trillion dollars. Just to compare, that is more than all the money in the world combined, more than the GDP of all countries together.
That’s why understanding market cap helps you know the real potential of a coin. If a project today has a market cap of 1 million and rises to 10 million, you made 10x on your money. But if it’s already at 500 million, thinking it will make 100x is much more unlikely, because it would need to reach 50 billion.
So it’s not about the price of the coin, it’s about how much total value it can reach in the market. Knowing this, we understand the potential that a coin can achieve and the profit potential we can have
