What Is Market Cap in Crypto? And Why It’s More Important Than Price
💡 Most beginners focus only on coin price — but Market Capitalization is the true metric that matters.
🧠 What is Market Cap?
It’s the total value of a cryptocurrency.
Formula:
Market Cap = Current Price x Circulating Supply
So even if a coin costs $0.01, if it has 100 billion tokens, the market cap is $1 billion — which is huge!
🚩 Why it matters more than price:
A coin at $500 may be undervalued
A coin at $0.005 could be overvalued
🔍 Smart investors compare market caps, not just prices.
📊 3 Market Cap Categories:
1. Large-cap: BTC, ETH — more stable
2. Mid-cap: LINK, MATIC — high potential
3. Low-cap: Small new projects — higher risk & reward
📌 Next time you see a "cheap" coin, ask:
Is it really undervalued… or just low-priced with huge supply?
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