Market Capitalization
Quick Answer
Market capitalization is the total market value of a cryptocurrency or company — calculated by multiplying the current price by the total number of coins or shares in circulation.
Definition
Market capitalization is the total market value of a cryptocurrency or company — calculated by multiplying the current price by the total number of coins or shares in circulation.
Explanation
In cryptocurrency, market cap ranks and compares assets. Large-cap cryptos over $10 billion are generally less volatile than mid-cap or small-cap altcoins. Market cap can be misleading — a low-priced coin with large supply can have higher market cap than a high-priced coin with limited supply. Fully diluted market cap accounts for all coins that will ever exist.
Example
If Bitcoin trades at $60,000 and there are 19.5 million Bitcoin in circulation, its market cap is approximately $1.17 trillion.
Frequently Asked Questions
What is Market Capitalization?
Market capitalization is the total market value of a cryptocurrency or company — calculated by multiplying the current price by the total number of coins or shares in circulation.
How does Market Capitalization work?
In cryptocurrency, market cap ranks and compares assets. Large-cap cryptos over $10 billion are generally less volatile than mid-cap or small-cap altcoins. Market cap can be misleading — a low-priced coin with large supply can have higher market cap than a high-priced coin with limited supply. Fully diluted market cap accounts for all coins that will ever exist.
Can you give an example of Market Capitalization?
If Bitcoin trades at $60,000 and there are 19.5 million Bitcoin in circulation, its market cap is approximately $1.17 trillion.