What is Market Capitalization in Crypto?

Market Capitalization (Or Market Cap) In Crypto Is A Metric Used To Determine The Total Value Of A Cryptocurrency In The Market

✅ How It's Calculated:

text{Market Cap} = text{Current Price of One Coin} times

text{Total Circulating Supply}

🔍 Example:

If a cryptocurrency is trading at $100 and has 10 million coins in circulation:

100 \times 10,000,000 = 1,000,000,000

🧠 Why It Matters:

Size Indicator: Helps compare the relative size of different cryptocurrencies

Risk Level:

1)Large-cap (e.g., Bitcoin, Ethereum): Generally more stable.

2)Mid-cap: More potential growth but higher risk.

3(Small-cap: High risk, high reward potential.

4)Investor Insight: A coin with a high market cap is often seen as more established or trusted.

⚠️ Limitations:

1)Doesn’t account for token liquidity or price manipulation.

2)A project can have a high market cap but still be vulnerable or overhyped if the supply is tightly held.