Market Cap of Cryptocurrency

Market Cap Calculation

Market cap might sound like something with a hard limit on it, but it’s actually short for “market capitalization.” The market capitalization is a number that indicates the current market value of a currency.

Market cap is calculated using this formula:

Market PRICE x NUMBER of coins in circulation = Market CAP

What Does it Mean?

So what’s the point of this number? Market cap determines the relative value of a digital currency, and lets us compare it to other cryptocurrencies.

Cap Size

Further breaking it down, market cap in the crypto world is divided into three size categories: large-cap, mid-cap and small-cap.

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