📘 A term in crypto that is worth knowing: Market Cap
You often see the phrase “this crypto has a large / small market cap”
But what does it actually mean? 🤔
Market Cap (market capitalization) —
this is the total value of all coins of this project.
Simply:
price of one coin × number of coins in circulation = market cap
📌 Why is this important? Because the price of a coin by itself says nothing.
A coin can cost: — 0.01$ and still be considered "large"
— or 100$ and be a very small project
Market cap helps to understand:
— the scale of the project
— whether it is already something big
— or still a small and risky asset
Without this, it's easy to get confused 👀