CRYPTOCURRENCY MARKET CAP

CRYPTOCURRENCY MARKET CAP

Market capitalization (market cap) What that means is the current share price multiplied by the total number of existing shares. How you break that down in cryptocurrency terms?  The current price of a coin times the total number of coins that are in the market; which is often referred to as circulating supply.

The Importance Of Market Cap In Cryptocurrency

The importance of cryptocurrency market cap is it gives acts as a more favorable indicator of a company’s worth than the price of its tokens individually. So even if the individual price of Coin A is more than that of Coin B, the overall value of Coin B is much more than Coin A. This is why market cap is a better indicator of a company’s worth than the price of its individual tokens.

The cryptocurrency market all-time high market cap. As of Jun 25, 2019 , was approximately $661.2 billion. As far as what affects the price of cryptocurrency, Let’s start with the most basic level of economics. Supply and demand are key role players in the price of a cryptocurrency. The price of a coin is determined by its availability. The harder it is to get, the higher the price. Less demand and higher supply mean lower prices.

Cryptocurrency market cap calculated

CRYPTOCURRENCY MARKET CAP

So how you would calculate crytocurrency market cap is by multiplying the price of the coin or token and its circulating supply. For instance: If there are 1 million coins or tokens in circulation and if its current price per coin or token is $1 then its total market cap is $1,000,000.

As of Jun 25, 2019, Bitcoin, remained to be the #1 cryptocurrency leader. The market capitalization of the world’s top digital currency was more than $125 billion, with a price per coin of more than $7,305.

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