Market Capitalization

Market capitalization refers to a coin’s overall trading value, which is calculated by multiplying the coin’s supply by its current price. It’s a term for a metric that measures how big a cryptocurrency is in comparison to others.

While the market capitalization of a company or cryptocurrency project might provide some insight into its size and performance, it is crucial to realize that it is not the same as money inflow. As a result, it does not reflect the amount of money in the market, because market cap is directly dependent on price, and a relatively little change in price can have a huge impact on market cap.