Here’s what you need to know. 👇

🔵 What Does Market Cap Mean?

Market cap (short for market capitalization) is the total value of a crypto asset. It is calculated using a simple formula:

Market Cap = Token Price x Total Supply

This number is often used to compare the relative sizes of different cryptocurrencies.

🔵 Why Does Market Cap Matter?

A token’s price alone does not determine its value. What really matters is how much of the token exists and how much money is in the project overall.

🔹 Example 1: A token priced at $1 with 1 billion tokens in circulation has a $1B market cap

🔹 Example 2: A token priced at $100 with only 10,000 tokens in circulation has a $1M market cap

Even though one token costs $1 and the other costs $100, the first project is 1,000 times bigger in terms of market cap.

🔵 How Is Market Cap Used?

Market cap helps compare crypto projects based on their overall size and adoption:

✅ Large-cap tokens ($10B+) – Established projects with strong adoption (Bitcoin, Ethereum, BNB)

✅ Mid-cap tokens ($1B–$10B) – Growing projects with expanding ecosystems (Avalanche, Chainlink, Polygon)

✅ Low-cap tokens (<$1B) – Emerging projects with higher risk (Low cap meme coins)

Instead of focusing on token price, always check the market cap to get the full picture. A low-priced token does not mean it is a better deal!

Remember, always do your own research! 🔎