📚 Lesson #7 – What Is Crypto Market Capitalization?
Market capitalization, or market cap, is the total value of a cryptocurrency based on its current price and circulating supply.
Formula:
Market Cap = Current Price × Circulating Supply
🔹 A higher market cap generally means a larger cryptocurrency by total market value.
🔹 A lower market cap can mean a smaller and potentially less established project.
🔹 Market cap helps compare the relative size of different cryptocurrencies.
🔹 Circulating supply is important because price alone does not tell you the total value of a project.
🔹 Market cap can change as price or circulating supply changes.
💡 Key Takeaway:
Market cap helps you understand the overall size of a cryptocurrency — not just the price of one coin.
📌 Educational content only. Do your own research and understand the risks.
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