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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