Market Capitalization And Why It Matters
A 1-minute lesson from the MarketPro academy, one of 20 in crypto trading.
Market capitalization, or market cap, is a quick way to gauge the relative size of a cryptocurrency. It is calculated by multiplying the circulating supply of coins by the current price per coin, giving traders a single number to compare projects of very different prices and supplies.
Market capitalization, or market cap, is a quick way to gauge the relative size of a cryptocurrency. It is calculated by multiplying the circulating supply of coins by the current price per coin, giving traders a single number to compare projects of very different prices and supplies.
Why Price Alone Is Misleading
A coin priced at a fraction of a cent is not automatically "cheaper" or more likely to grow than one priced at thousands of dollars — supply size distorts the picture. Market cap corrects for this by showing the total value assigned to a project by the market.
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Step 4 of 10 on Crypto Trading Path
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Not investment advice. Past performance is not indicative of future results.