Market Cap
The total value of a cryptocurrency — calculated as price multiplied by circulating supply.
Market Cap (short for Market Capitalization) shows
how big or valuable a cryptocurrency is compared to others.
It’s calculated as:
💰 Market Cap = Current Price × Circulating Supply
Example
If a coin’s price is $2 and there are 100 million coins in circulation,
the market cap is $200 million.
Why it matters
- Shows the overall size and importance of a coin.
- Helps compare projects — e.g. Bitcoin vs. smaller altcoins.
- A large market cap means a more stable and established coin.
- A small market cap means higher risk but also higher growth potential.
Market Cap categories
- Large Cap: $10B+ (Bitcoin, Ethereum)
- Mid Cap: $1B–$10B (Avalanche, Polygon)
- Small Cap: Below $1B (newer projects)
💡 Lanzo Tip
Don’t judge coins by price alone —
always check market cap to understand their real value and growth potential 📊