1. Kennisbank
  2. Trading
  3. What is the cryptocurrency market cap?

What is the cryptocurrency market cap?

The market capitalization of cryptocurrency is a value that indicates the current market value of cryptocurrency. The market capitalization is calculated using the following formula:

The current market price * number of coins in circulation = the current market capitalization of a currency.

Example: The current value of Bitcoin is € 8247 and there are currently 18.426.731 BTC in circulation. To find out what the Bitcoin market capitalization is, you multiply € 8247 times 18.426.731 = €151.5 billion.

The market capitalization is used to determine the value of a cryptocurrency and to compare it with other cryptocurrencies. We also know the term market capitalization from the traditional financial world, which represents the total value of a company. If each share is one part of the cake, the share price multiplied by the total number of shares, gives the total company value.

Where can you view the market capitalization?

Several websites show the market capitalization of cryptocurrency, one of our favorites is: https://coinpaprika.com

Leave a Reply

Your email address will not be published. Required fields are marked *