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How is crypto market cap calculated?

In crypto, market cap is calculated by multiplying the total number of coins that have been mined by the price of a single coin at any given time. One way to think about market cap is as a rough gauge for how stable an asset is likely to be. (It’s important to note that even Bitcoin, crypto’s biggest market cap, still sees volatility.)

How is market capitalization calculated?

It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin. Market capitalization (or market cap) is the total dollar value of all the shares of a company’s stock — or, in the case of Bitcoin or another cryptocurrency, of all the coins that have been mined.

What is the market cap of a coin?

The market cap of a coin is simply what you’d get if you added up every available coin at the current price per coin. Imagine if you cashed out every Bitcoin in existence at the exact same time. That’s the market cap. For example, Bitcoin’s Market Cap is 18,330,762 BTC X $7200 = $132 billion, at the time of writing.

What is the market cap of cryptocurrency B?

If Cryptocurrency B has 100,000 coins in circulation and each coin is worth $2, it’s market cap is $200,000. Even though the individual coin price of Cryptocurrency B is higher than Cryptocurrency A, Cryptocurrency A’s overall value is double Cryptocurrency B’s.

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