1. What is Market Cap?

Market Capitalization (Market Cap) is a financial metric that represents the total market value of a cryptocurrency or company's outstanding shares/coins. It is calculated by multiplying the current price per unit by the total supply of coins/shares.

2. How Does the Calculator Work?

The calculator uses the Market Cap formula:

Where:

• \( Price \) — Current price per coin (currency)
• \( Supply \) — Total circulating supply (coins)

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

3. Importance of Market Cap Calculation

Details: Market cap is a crucial metric for comparing the relative size of different cryptocurrencies. It helps investors assess the risk and potential of investments, as larger market cap coins are generally considered more stable.

4. Using the Calculator

Tips: Enter the current price per coin in your preferred currency and the total circulating supply of coins. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between market cap and fully diluted market cap?
A: Market cap uses circulating supply, while fully diluted market cap uses maximum supply, showing potential future market value.

Q2: Why is market cap important in cryptocurrency?
A: It helps determine a cryptocurrency's rank, stability, and investment potential compared to other digital assets.

Q3: How often should market cap be calculated?
A: Market cap should be calculated regularly as cryptocurrency prices are highly volatile and can change rapidly.

Q4: What are the market cap categories?
A: Generally categorized as: Large-cap (>$10B), Mid-cap ($1B-$10B), Small-cap ($100M-$1B), and Micro-cap (<$100M).

Q5: Can market cap be manipulated?
A: Yes, through wash trading or artificial price inflation, which is why it's important to use reliable data sources.