What is market capitalization? Understand market capitalization in the cryptocurrency world in one minute

Market cap, calculated as (current price x total supply), gauges a cryptocurrency's size, liquidity, and market sentiment, serving as a barometer of its dominance in the industry.

Nov 13, 2024 at 12:41 am

What is Market Capitalization? Understanding Market Cap in Cryptocurrency in 60 Seconds1. Definition:

Market capitalization (market cap) refers to the total value of all available coins or tokens of a specific cryptocurrency.

2. Calculation:

Market cap = Current price of the cryptocurrency x Total supply of coins/tokens

3. Importance:

Market cap serves as a key indicator of a cryptocurrency's size, liquidity, and overall market sentiment:

- **Size:** A higher market cap indicates a larger and more established cryptocurrency.
- **Liquidity:** Cryptocurrencies with larger market caps tend to be more liquid, making it easier for investors to buy and sell.
- **Market Sentiment:** Market cap fluctuations can reflect changes in investor confidence and speculation.

4. Tracking Market Cap:

Market caps can be tracked through cryptocurrency data websites and trading platforms like CoinMarketCap or Binance.

5. Top 10 Cryptocurrencies by Market Cap (as of February 2023):

OKX
Binance
Tether
USD Coin
Bitcoin
Ethereum
BNB
XRP
Cardano
Polygon

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Fear & Greed Index

Trade Now

Biggest Gainers

RAIN

$0.007852

113.00%

Trade Now
PIPPIN

$0.06097

51.96%

Trade Now
PARTI

$0.1396

42.04%

Trade Now
WAVES

$0.9141

41.69%

Trade Now
ARC

$0.04302

35.73%

Trade Now
HONEY

$0.01029

21.80%

Trade Now

Latest Crypto News

Meme Tokens, BTFD Coin, Popcat: The New York Crypto Beat
2025-12-27 04:30:01
Crypto Token Sales Surge in 2025: Nexchain and WeWake Lead the Charge in Next-Gen Blockchain Projects
2025-12-27 04:25:01
Pi Network's Token Price Post-Unlock: A Tale of Two Markets Amid Mainnet Anticipation
2025-12-27 04:25:01
From 2025 Lows to Measured Gains: NFT Market Sees Shifting Tides for Buyers and Sellers
2025-12-27 04:20:02
Vitalik Buterin on Grok and Truth-Seeking: An AI Revolution on X?
2025-12-27 04:20:02
Binance and Trust Wallet Confront Hack Fallout: $7 Million Lost in Browser Extension Breach
2025-12-27 04:15:01

Related knowledge

What are the risks of using a crypto bridge?

Dec 23,2025 at 09:39pm

Risk of Smart Contract Vulnerabilities1. Crypto bridges rely heavily on smart contracts to lock, mint, and validate assets across chains. A single fla...

What is the difference between a token swap and a token bridge?

Dec 23,2025 at 01:19am

Token Swap Mechanics1. A token swap involves the exchange of one digital asset for another within the same blockchain ecosystem or across compatible p...

What is a blockchain "state"?

Dec 23,2025 at 05:19am

Definition of Blockchain State1. A blockchain state represents the current snapshot of all account balances, smart contract code, and storage values a...

What is a "decentralized physical infrastructure network" (DePIN)?

Dec 25,2025 at 05:40pm

Definition and Core Concept1. A decentralized physical infrastructure network (DePIN) is a system that coordinates real-world hardware resources—such ...

What is a "liquid staking" derivative (e.g., stETH)?

Dec 23,2025 at 05:59am

Liquid Staking Derivatives Explained1. Liquid staking derivatives are tokenized representations of staked assets on proof-of-stake blockchains. They e...

What is "yield farming" and how does it differ from staking?

Dec 23,2025 at 09:59am

Yield Farming Fundamentals1. Yield farming is a decentralized finance (DeFi) practice where users supply cryptocurrency assets to liquidity pools on a...