#crypto Market Capitalization Explained

What Is Crypto Market Capitalization?

Crypto #market capitalization is a simple way to measure the total value of a cryptocurrency. It’s calculated by multiplying the current price of a single token by the number of tokens currently in circulation:

Market cap = Current Price × Circulating Supply

For example, if a cryptocurrency is priced at $10 and there are 10 million of them in circulation, its market cap would be $100 million. You will often see tokens ranked by market cap on data platforms like #CoinMarketCap or #CoinGecko .

These platforms typically calculate prices using a volume-weighted average from multiple cryptocurrency exchanges, which helps smooth out price differences across trading platforms.

In practice, market cap can help you:

Compare different cryptocurrencies, regardless of their individual price.

Track how projects grow or decline over time.

See which tokens are leading the market in terms of value and adoption.

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