What is Market Cap in Cryptocurrency?
Market cap is the total value of a cryptocurrency, calculated by multiplying the current price by the circulating supply.
Market capitalization (market cap) is one of the most important metrics for evaluating and comparing cryptocurrencies. It represents the total value of all coins currently in circulation.
Market Cap Formula
Market Cap = Current Price × Circulating Supply
For example, if a coin has 100 million tokens in circulation and trades at $2, its market cap is $200 million.
Market Cap Categories
Cryptocurrencies are often categorized by their market cap:
- **Large Cap** (>$10B): Bitcoin, Ethereum - generally more stable
- **Mid Cap** ($1B-$10B): Established altcoins with growth potential
- **Small Cap** ($100M-$1B): Higher risk, higher potential returns
- **Micro Cap** ($10M-$100M): Very high risk, potential for 10-100x gains
- **Nano Cap** (<$10M): Extremely speculative
Why Market Cap Matters
Market cap helps you understand: 1. The relative size of a cryptocurrency 2. Potential for growth (smaller cap = more room to grow) 3. Risk level (larger cap = generally more stable) 4. Realistic price targets (a coin can't hit $100 if that would mean $1T market cap)
💡 Key Points
- ✓Market Cap = Price × Circulating Supply
- ✓Don't compare coins by price alone - use market cap
- ✓Smaller market cap means more room for growth (and more risk)
- ✓Fully diluted market cap includes all future tokens
- ✓Market cap doesn't equal actual money invested
How to Use Market Capitalization
- 1Filter by market cap to match your risk tolerance
- 2Calculate realistic price targets based on market cap
- 3Compare similar projects by market cap, not price
- 4Watch for market cap relative to competitors in the same sector
- 5Use our market cap filters to find gems in your target range
Try It in Action
Apply Market Capitalization to find trading opportunities.
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