What Is Market Cap of Cryptocurrency?
The market cap of a cryptocurrency can be calculated when we multiply the price of the cryptocurrency coin with the circulating supply it has. It's a clear view through which we can understand the size of a cryptocurrency asset, and it shows us the dollar market value of the cryptocurrency coin in question.
How Is It Calculated?
The price is calculated through the multiplication of the price of the coin, as well as its circulating supply.
Market Cap measured in USD equals the Circulating Supply of coins divided by the Price of USD per coin.
For example, if there are 1 million coins in circulation, and the price per coin is $2, the total market cap will be at $2,000,000.
Where Does the Analytical Data on Cryptocurrency Come From, and How Do You Check It?
If you're interested in where the market cap analytical data comes from, there are numerous explorers that provide you with the opportunity to view them.
Some of the most popular ones include:
Why Is Market Cap an Important Metric for Cryptocurrency?
The market capitalization (market cap) shows us the total dollar market value of a cryptocurrency. It allows any investor to understand the size of a cryptocurrency asset and have a quick way through which they can compare it against another cryptocurrency asset. It essentially tells us how much a cryptocurrency is worth, as well as the market's perception of its future prospects due to the fact that it reflects what cryptocurrency investors are willing to pay for the token.