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Market Cap Formula:
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Market capitalization (market cap) is the total market value of a cryptocurrency's circulating supply. It represents the total worth of all coins/tokens currently available in the market and is a key metric for comparing the relative size of different cryptocurrencies.
The calculator uses the market cap formula:
Where:
Explanation: The formula multiplies the current price of a single token by the total number of tokens available in the market to determine the cryptocurrency's overall market value.
Details: Market cap is crucial for investors to assess a cryptocurrency's size, stability, and growth potential. It helps categorize cryptocurrencies into large-cap, mid-cap, and small-cap segments for investment strategy.
Tips: Enter the current price per token in your preferred currency and the circulating supply of tokens. Both values must be positive numbers for accurate calculation.
Q1: What's the difference between circulating supply and total supply?
A: Circulating supply refers to coins/tokens currently available and trading in the market, while total supply includes all coins that have been mined/created, including those locked or reserved.
Q2: Why is market cap important for cryptocurrency ranking?
A: Market cap provides a standardized way to compare the relative size and dominance of different cryptocurrencies, helping investors make informed decisions about portfolio allocation.
Q3: How often should market cap be calculated?
A: Market cap should be calculated regularly as cryptocurrency prices are highly volatile and circulating supplies can change due to mining, burning, or token releases.
Q4: What are the market cap categories in crypto?
A: Generally: Large-cap ($10B+), Mid-cap ($1B-$10B), Small-cap ($100M-$1B), and Micro-cap (below $100M).
Q5: Can market cap be manipulated?
A: Yes, through wash trading, artificial price inflation, or misleading circulating supply reporting. Always verify data from multiple reliable sources.