Cryptocurrency prices

Prices in USD, 24-hour change: CoinGecko · convert amounts in the cryptocurrency calculator

Market capitalization, often simply called market cap, is a straightforward way to measure the total value of a cryptocurrency.

It's calculated by multiplying the current market price of a single unit of the cryptocurrency by the total number of coins or tokens that are currently circulating in the market and in the general public's hands. This figure, known as the circulating supply, is the best approximation of the number of coins that are actually available for trading.

This figure provides a rough indicator of the size of the cryptocurrency market.

However, market cap is not the only way to measure the value of a cryptocurrency. Another common metric is the total supply, which includes all the coins that have been created or mined, minus any that have been verifiably burned or destroyed. The max supply, on the other hand, is the best approximation of the maximum number of coins that will ever exist in the lifetime of the cryptocurrency.

Some cryptocurrencies may have a fixed max supply, while others may have an unlimited supply. Multiplying the price of an altcoin by its max supply to calculate its market cap does show how much the coin could hypothetically be worth if all tokens were in circulation, but this is generally a less accurate representation.

If more coins are available on the market, it could drive down the price of individual units, especially if demand remains constant. Conversely, a low circulating supply relative to demand can lead to higher prices.

Understanding these different metrics can help investors make more informed decisions about which cryptocurrencies to buy or sell. A higher market cap generally indicates a larger and more established market, which can provide more stability and liquidity. However, a lower-cap coin may have more room for growth, but also comes with higher volatility and risk.