1. What is Crypto Market Cap?

Market capitalization (market cap) is the total market value of a cryptocurrency's circulating supply. It's calculated by multiplying the current price of a single unit by the circulating supply of coins or tokens.

2. How Does the Calculator Work?

The calculator uses the market cap formula:

Where:

• \( Circulating\ Supply \) — Number of coins currently in circulation
• \( Price \) — Current price per coin in USD

Explanation: This simple calculation gives the total valuation of a cryptocurrency based on its current market price and available supply.

3. Importance of Market Cap

Details: Market cap helps investors understand the size and value of a cryptocurrency relative to others. It's a key metric for comparing different cryptocurrencies and assessing their relative positions in the market.

4. Using the Calculator

Tips: Enter the current circulating supply (not total supply) and the current price per coin. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between circulating supply and total supply?
A: Circulating supply is the number of coins currently available to the public, while total supply includes all coins that have been mined/created, including those that may be locked or reserved.

Q2: Why is market cap important?
A: Market cap gives a more accurate representation of a cryptocurrency's value than price alone, as it considers both price and supply.

Q3: How often should market cap be calculated?
A: Market cap changes constantly as prices fluctuate. For accurate assessments, it should be calculated using real-time data.

Q4: What are the market cap categories?
A: Generally: Large-cap (>$10B), Mid-cap ($1B-$10B), Small-cap (<$1B). These indicate relative size and stability.

Q5: Can market cap be manipulated?
A: While difficult for large-cap coins, low-volume coins can experience "pump and dump" schemes that temporarily inflate market cap.