What is Market Cap?

The market cap of a coin is the total number of coins times the price. (Market capitalization) = (Cost per token) x (Number of tokens).

For the most part in crypto we look at circulating market cap, because we want to know the value of the coins on the open market vs. what people are willing to pay. So we look at (Circulating Market capitalization) = (Cost per token) x (Number of tokens in circulation).

However, it is good to know the total cap too, (Total Market capitalization) = (Cost per token) x (Number of tokens in in total on the blockchain).

One thing to keep in mind is that some blockchains allow for more tokens to be created, like Ripple, while some do not, like Bitcoin.

For more information on market cap, see CoinMarketCap.com.

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