đ What Is Market Cap in Crypto?
Market cap shows the total value of a cryptocurrency.
Formula:
Market Cap = Price Ă Circulating Supply
Example:
If a coin costs $10 and has 1 million coins:
Market cap = $10 Ă 1,000,000 = $10M
So market cap tells you the real size of a project, not just the price.
Why it matters:
â High market cap = more stable
â Low market cap = higher risk
â Cheap price doesnât mean cheap project
â Size helps compare coins properly
Example:
A $1 coin with huge supply can be bigger than a $1,000 coin with small supply.
Simple idea:
Price shows value per coin.
Market cap shows value of the whole project.
Always look at market cap, not only price.