What does “market capitalization” mean? A “market capitalizat | Learn Crypto | English

What does “market capitalization” mean?

A “market capitalization” is an indicator of the general value of a cryptocurrency. To calculate it, multiply the price of one coin by its total number of coins in circulation (however, CoinMarketCap and CoinGecko do this for you already).

For example, if the price for one coin is $100 and there are 1 million coins in circulation, its market capitalization, or “market cap,” will be $100 million.

A coin’s market cap is a data point that gets a lot of attention from investors because it shows how much the market values a specific coin. The higher the market cap, the more valuable the coin is.

Although there’s always tons of chatter surrounding the market caps of various cryptocurrencies, it’s by no means the only data indicator of a coin’s health.

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