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What is crypto market cap?
Market capitalization (market cap) is a metric that indicates the market value and size of a cryptocurrency. Cryptocurrency market cap is represented by this handy equation: current market price x circulating supply (total # of coins in the market) = crypto market capHow big is a cryptocurrency market?
For example, a cryptocurrency costs $100 and has a total of 1,000,000 coins in circulation. So, its market capitalization is $100 million. Since market caps are based on the prices of cryptocurrencies, they change constantly. What does the size of the cryptocurrency market tell investors?What would happen if the cryptocurrency market cap reached $200 billion?
This increases the value of other people’s tokens accordingly – raising the total market cap even further. Then, if everybody suddenly decided to sell the cryptocurrency when the market cap reached $200 billion, the price would rapidly fall due to shrinking demand.How do you calculate market capitalization in cryptocurrencies?
It is found by multiplying the number of shares outstanding by the price per share. It’s use as a measure of overall value is now being applied to bonds, commodities, and cryptocurrencies using the same formula. What Does Market Capitalization Mean in Crypto? What Cryptocurrency has the Biggest Market Cap?