What is the purpose of a market cap coin?

Market cap allows you to compare the total value of one cryptocurrency with another so you can make more informed investment decisions. Cryptocurrencies are classified by their market cap into three categories: Large-cap cryptocurrencies, including Bitcoin and Ethereum, have a market cap of more than $10 billion.

What is the difference between a coin's market cap and its price?

To demonstrate, let’s compare the market cap of two fictional cryptocurrencies. If Cryptocurrency A has 400,000 coins in circulation and each coin is worth $1, it’s market cap is $400,000. If Cryptocurrency B has 100,000 coins in circulation and each coin is worth $2, it’s market cap is $200,000.

How is market cap coin calculated?

In crypto, market cap is calculated by multiplying the total number of coins that have been mined by the price of a single coin at any given time. One way to think about market cap is as a rough gauge for how stable an asset is likely to be.