Total capitalization of a cryptocurrency’s price. It is one of the ways to rank the relative size of a cryptocurrency. *see Circulating Supply.
What Is Market Capitalization/Market Cap/MCAP?
Often dubbed market cap, this illustrates the collective value of a cryptocurrency when all of the coins are added together.
It is often used as a benchmark of the popularity and desirability of certain cryptocurrencies.
CoinMarketCap calculates market cap by using volume weighted average of prices from multiple exchanges.
Market cap is calculated by multiplying a single coin’s price by the number of coins in circulation.
This means a market cap can be very volatile just like the price of a cryptocurrency and fluctuate on an hourly basis.
Large-cap cryptocurrencies that boast a market cap of greater than $10 billion are considered to be safer cryptocurrency investments. This is not to say that they are not volatile.
Some say large-cap cryptocurrencies can even hold some safe haven status, but critics disagree with this.