Market Capitalisation Beginner
Market cap is a coin’s current price multiplied by its circulating supply — a measure of its total size.
Market cap helps compare coins more fairly than price alone, since a low price with a huge supply can still be a large asset. roo2ya derives market cap from a live price and a curated circulating-supply figure.
Key takeaways
- Market capitalisation estimates a coin's total value by multiplying its current price by its circulating supply.
- A high market cap suggests a larger, often more established asset, but it does not guarantee stability or quality.
- Market cap can be misleading when circulating supply figures are uncertain or thinly traded.
Market Capitalisation — frequently asked questions
How is market cap calculated?
It is the current price of a coin multiplied by the number of units currently in circulation.
Does a higher market cap mean a better investment?
No. Market cap reflects size, not quality or future performance, and is not financial advice.
This definition is educational and not financial advice. Crypto is volatile and high-risk — always do your own research.
Keep learning
New to crypto, or filling in the gaps? Work through the essentials in Learn, browse every term A–Z, or see live prices for the coins these concepts power.