Trading volume measures coins traded within 24 hours, indicating market participation and investor interest. Price per token alone can be misleading—a lower-priced token with larger supply can have greater market cap than a higher-priced token with smaller supply. Analysing multiple metrics together provides more comprehensive investment insights. Market cap data serves as a fundamental tool for cryptocurrency evaluation when you apply it strategically alongside other metrics. Comparing cryptocurrencies through market cap reveals their true market influence beyond simple price comparisons. A coin priced at £50 with 10 million tokens in circulation (£500 million market cap) carries less market weight than a £2 token with 1 billion circulating supply (£2 billion market cap).

These digital assets may offer a balance between stability and growth potential, making them attractive to investors seeking moderate risk exposure in the crypto space. Market capitalisation serves as a fundamental metric that directly influences your investment decisions and portfolio strategy in the cryptocurrency market. Understanding market cap enables you to assess risk levels and compare digital assets objectively beyond their individual coin prices. If you’re trying to understand what market capitalization is in crypto, you’re already thinking like a smart investor.

• As exchanges may sometimes show abnormal prices, the crypto community relies on CoinGecko to track prices accurately.
• Total supply includes all existing coins, including those that may be locked, reserved, or not yet released.
• Conservative investors might lean towards large caps, while those with a higher risk appetite might consider small caps for speculative gains.

Confused by token metrics?

• Compare cryptocurrencies through market cap to reveal true market influence beyond price comparisons.
• While the calculation itself can’t be manipulated (it’s just math), the inputs can be influenced.
• While market cap gives traders an idea of the size of an asset within the market, trading volume provides information about the level of buying and selling activity.
• Multiply that by the coin price of 1,588.61 euros, and you arrive at the Ethereum market cap of 185.5 billion euros.

However, crypto market caps can also give us a fact-based look at how altcoins are performing — a much-needed source of objectivity away from social media. Like traditional investments, cryptocurrencies are affected by macroeconomic conditions. Inflation, interest rates, and broader economic trends can influence the prices of crypto assets and, thus, their market cap.

Market Cap vs. Price: What’s the Difference?

The relative importance of the size of the cryptocurrency market is a topic of intense debate. According to some critics, it’s an unwanted legacy of the stock market that causes people to make poor investing decisions and fuels fear and greed. Cryptocurrency market capitalization can also provide an objective, fact-based assessment of a token’s performance, which is crucial when considering alternatives to social media hype. It is important to consider both crypto market cap and trading volume when assessing the potential of a cryptocurrency. A high market cap combined with high trading volume can indicate a strong and stable asset, while a low market cap and low trading volume may suggest a less established or less popular asset. In the cryptocurrency space, market capitalisation (market cap for short) plays a crucial role for traders understanding the overall value and significance of a particular digital asset.

Does a higher market cap mean a cryptocurrency is a better investment?

These stocks use float-adjusted market cap, as well as major index funds and exchange-traded funds. Our prices are calculated using an average price formula based on available trading pairs across multiple exchanges. We also have algorithms to detect and exclude anomalous tickers from our prices.

Stock Price Movement (99% of Daily Changes)

For seasoned investors, you can track the performance of your holdings & watch coins you’re interested in with CoinGecko’s customizable crypto portfolio. What sets our list apart is we aggregate cryptos from various exchanges to give a full picture of is bitcoin traceable privacy guides the crypto market and not just for coins on a particular exchange. Every cryptocurrency listed on CoinGecko is manually vetted and curated by our operational team. We vet each coin to reduce the risk of scams and remove inactive coins or dead projects to keep our list relevant to the market. If you can’t find a coin on CoinGecko, try searching on our DEX tracker GeckoTerminal.

Still, a trader should know that the circulating supply of a coin—which is used in this calculation—is different from the total supply. On a few occasions, it shapes how portfolios are built, balanced, and managed, while on a few occasions (like memecoins), it’s just the number of people participating in that market. What happens to the market cap when millions of vested tokens unlock next quarter?

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CPI & Inflation Data and Crypto Prices: March 2025

This metric helps you assess the potential future market capitalisation once all tokens enter circulation. Market cap doesn’t reflect code quality, developer activity, or community strength. Two coins with similar market caps can have wildly different teams, roadmaps, and risks. Use tools like CryptoMiso or Santiment to check development and sentiment metrics. The total value of any cryptocurrency is denoted by a single number, which is known as its market cap. To calculate it, you have to multiply the is xtrade broker reliable find out everything in our review asset’s circulating supply with its current price in the market.

A high and sustained market cap often correlates with real-world traction, strong developer activity, high transaction volumes, or ecosystem integrations. Tokens with deep on-chain activity and long-term holders tend to reflect that stability in their cap. While small-caps offer asymmetric upside in bull markets, they also carry a strong probability of permanent capital loss. It excludes allocations still locked in smart contracts, team wallets under vesting cliffs, or ecosystem treasuries not yet released. This can offer investors wider market insight and can help them formulate decisions about whether now is the right time to invest.

UNDERSTANDING

These tools help you compare coins, filter by size, and spot trends across the entire crypto market. In 2020, Ripple’s XRP had top market capitalization, but over 60% of its supply was locked in escrow. Use it alongside other metrics like trading volume, developer activity, and community strength for a complete view. Some may mistakenly believe that market cap provides insight into a cryptocurrency’s fundamental value or the quality of its cryptocurrency crime losses more than double to $4 5 billion in 2019 report finds underlying technology and project.