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Market cap

Market cap is the total value of a cryptocurrency at a given moment. It’s also known as market capitalization.

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What is market cap?

You calculate market cap by multiplying the price of one coin by the number of coins in circulation. Coins in circulation are the coins that are already available on the market.

So, the price of one coin doesn’t tell you everything. A low-priced coin can still have a higher market cap than a more expensive coin if there are many more of them.

An example of market cap

Let’s say there are 10 million coins in circulation. If each coin costs €2, the market cap is €20 million: 10 million × €2.

This example shows that both the price and the number of coins matter. Looking only at the price of one coin doesn’t give you the full picture.

Why is market cap important in crypto?

Market cap gives you a quick idea of how large a crypto project is compared with other cryptocurrencies. Market cap can change when the price rises or falls, or when more coins are added.

Cryptocurrencies with a lower market cap are often less well-known and can have bigger price swings. A high market cap doesn’t mean a cryptocurrency is safe or that its price will rise. It’s a snapshot that helps you compare cryptocurrencies.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.