What is market cap in crypto?

Market cap (market capitalization) is the total value of all the coins in circulation. The formula is simple: price × circulating supply.

Why price alone is misleading

A coin priced at $0.001 isn't "cheaper" than one at $50,000 in any meaningful sense. If the $0.001 coin has trillions of coins in circulation, its market cap could be enormous. Market cap tells you how big a project is; price alone doesn't.

Large-cap vs small-cap

Bitcoin and Ethereum are the largest by market cap and are generally less volatile than tiny coins. Small-cap coins can move much more dramatically — both up and down — because it takes far less money to swing their price. Bigger price swings mean bigger risk.

A caution

Market cap can be misleading if most coins are held by a few wallets, or if trading volume is thin. Always look at market cap and real trading volume together — see both live on any coin page.