What is Market Cap and why does it have such importance?
This is a Guide on Market Caps.
Market Cap is short for Market Capitalisation and put simply is the total value of a Cryptocurrency. For example, Bitcoin currently has a Market Cap of over $366B, according to CoinMarketCap.
How to work out the Market Cap?
So, to work out the market cap of any cryptocurrency is x (times) the price by the circulating supply.
Avalanche Price ($16.07) x Circulating Supply (296,335,929) = $4.83B+
It’s as simple as that.
Why is it important?
Market Caps are one of the first few things you look at when you invest in a Cryptocurrency. If the Crypto has a large market cap, it is generally considered a safer investment as it would have less volatility.
However, we have seen Top 10 tokens, such as $LUNA lose such positions. So it’s important to invest responsibly, no matter the market cap size.
As you may guess, Cryptos with smaller market caps will experience extremely positive and negative volatility.
It’s important to research extensively before you invest anything, hence why we have project reviews on our website, to give you a foundational layer of research. The link is at the bottom!
At the time of writing, the Total Cryptocurrency Market Cap is sitting at $941M. In November 2021, the Crypto Market Cap reached an all-time high of $2.91 Trillion!
We are still very early… Don’t forget.
@CoinMarketCap – coinmarketcap.com
@CoinGecko – coingecko.com
@DexScreener – dexscreener.com
That’s it! Thanks for reading! Have a look at our Guides section for more!
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