How to calculate Market Cap ?
crypto market capitalization (also known as market cap) refers to the total value of all the coins or tokens in circulation. It is calculated by multiplying the current price of a cryptocurrency by its circulating supply. For example,
Bitcoin.
The current price of Bitcoin is 31,000.
The circulating supply is 21 million
So market capitalization would be
31,000 price × 21million supply
= $651 billions.
The market cap is symbol of strength, dominance and size of any Crypto currency and investors always looks into it before any investment. It is also a visibility scale of project which present the power and energy in the currency.