Many people don't know what is Market Cap.
today I am going to explain it to you what is this thing..
Market capitalization, or market cap, in cryptocurrency refers to the total value of all outstanding coins or tokens of a particular cryptocurrency. It's calculated by multiplying the total number of coins in circulation by the current market price of one coin.
Market cap = Total circulating supply x Current market price
For example, if a cryptocurrency has a circulating supply of 1 million coins and the current market price is $100, the market cap would be:
Market cap = 1,000,000 x $100 = $100,000,000
Market cap is often used to:
1. Evaluate the size and stability of a cryptocurrency
2. Compare the relative size of different cryptocurrencies
3. Determine the potential for growth or volatility
Market cap categories:
1. *Large-cap*: Established cryptocurrencies with high market caps (e.g., Bitcoin, Ethereum)
2. *Mid-cap*: Cryptocurrencies with moderate market caps, often with growing adoption
3. *Small-cap*: Newer or niche cryptocurrencies with lower market caps, potentially higher risk.