1. What is Market Capitalization?

Market capitalization (market cap) is the total market value of a cryptocurrency's circulating supply. It's calculated by multiplying the current market price of a single coin by the total number of coins in circulation.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Coin\ Price \) — Current price of one coin/token in USD
• \( Circulating\ Supply \) — Number of coins currently in circulation

Explanation: This calculation gives the total theoretical value of all circulating coins at the current market price.

3. Importance of Market Cap

Details: Market cap helps investors understand the relative size and value of cryptocurrencies. It's a better indicator of value than price alone, as it considers both price and circulating supply.

4. Using the Calculator

Tips: Enter the current price per coin in USD and the circulating supply (not total supply). The calculator will automatically compute the market capitalization.

5. Frequently Asked Questions (FAQ)

Q1: Why use market cap instead of just price?
A: Market cap shows the total value of all coins, giving better perspective than price alone. A coin with lower price but higher supply may be more valuable than one with higher price but lower supply.

Q2: What's the difference between circulating and total supply?
A: Circulating supply is the number of coins currently available, while total supply includes coins that may be locked, reserved, or not yet mined/released.

Q3: How often does market cap change?
A: Market cap changes constantly as coin prices fluctuate in real-time markets. Supply changes less frequently but can affect market cap when new coins are minted or burned.

Q4: What are the market cap categories?
A: Generally: Large-cap (>$10B), Mid-cap ($1B-$10B), Small-cap (<$1B). These indicate relative size and stability.

Q5: Can market cap be manipulated?
A: Yes, through tactics like wash trading or circulating supply manipulation. Always verify data from reliable sources.