Market Cap (Market Capitalization)
Market cap is the total value of a cryptocurrency, calculated by multiplying the current price by the circulating supply. It shows you the size and relative importance of a crypto asset.
Understanding the Concept
Market cap tells you what's realistic. A $10M market cap coin can 100x to $1B. Bitcoin at $1.2T market cap can't—there isn't enough money in the world. Use market cap to gauge opportunity and risk. Low cap (<$100M) = high risk, high reward. Mid cap ($1B-$10B) = established but room to grow. Large cap (>$50B) = safer, slower growth. Don't confuse price with value. A $0.0001 token isn't "cheap" if it has a $5B market cap and 50 trillion circulating supply. What matters is market cap relative to potential. Compare projects in the same category: if a DeFi protocol has 1/10th the market cap of a competitor but similar metrics, that's opportunity.
Real-World Example
Coin A costs $1 with 10B supply = $10B market cap. Coin B costs $100 with 50M supply = $5B market cap. Coin B is actually smaller (and has more room to grow) despite the higher price per coin.
How Strykr Helps
Strykr tracks Market Cap developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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