What is the market cap of a coin?

In calculating market cap, the industry uses the following formula: Example: If “A Coin” has 300,000 coins in circulation and each coin is worth $2, the market cap for A Coin is $600,000. A rule of thumb--never judge a company’s worth solely based on the price of its individual token. Now, let’s add “B Coin” into the mix.

What is the market cap of a cryptocurrency?

It’s similar in cryptocurrency, except cryptos don’t represent equity in a company like stocks. The market cap of a coin is simply what you’d get if you added up every available coin at the current price per coin. Imagine if you cashed out every Bitcoin in existence at the exact same time. That’s the market cap.

What is CoinMarketCap?

Coinmarketcap is a website for tracking capitalization of various crypto currencies. The page provides various data about several listed coins, such as their price, available supply, trade volume over last 24 hours or market capitalization. The statistics are updated every 5 minutes.

Do small market cap coins have more room for growth?

Sometimes small market cap coins have much more room for growth than the bigger coins. Meanwhile Bitcoin is so important for cryptocurrency at large that it tends to drive up all altcoins, whenever its total market cap hits new all-time highs. Are Coins with Small Market Caps Risky?