1. What Is Market Capitalization?

Market capitalization (market cap) is the total market value of a cryptocurrency's circulating supply. It is a key metric used to rank cryptocurrencies by their relative size in the market.

2. How Does The Calculator Work?

The calculator uses the market cap formula:

Where:

• \( Price \) — Current price per token in USD
• \( Circulating\ Supply \) — Number of tokens currently in circulation

Explanation: Market cap represents the theoretical total value of all circulating tokens at the current market price.

3. Importance Of Market Cap Calculation

Details: Market cap is crucial for comparing the relative size of different cryptocurrencies, assessing investment risk, and understanding a token's position in the market hierarchy.

4. Using The Calculator

Tips: Enter the current price per token in USD and the circulating supply of tokens. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: Why is market cap important in cryptocurrency?
A: Market cap provides a more accurate representation of a cryptocurrency's value and size than price alone, helping investors make informed decisions.

Q2: How does market cap differ from fully diluted valuation?
A: Market cap uses circulating supply, while fully diluted valuation uses the maximum possible supply of tokens.

Q3: Can market cap change over time?
A: Yes, market cap fluctuates with both price changes and changes in circulating supply (through token burns, minting, or unlocking).

Q4: What are the typical market cap categories?
A: Cryptocurrencies are often categorized as large-cap ($10B+), mid-cap ($1B-$10B), small-cap ($100M-$1B), and micro-cap (under $100M).

Q5: Where can I find accurate circulating supply data?
A: Reliable data can typically be found on major cryptocurrency tracking websites, blockchain explorers, or the project's official documentation.