MARKET CAPITALIZATION (MARKET CAP/MCAP)

Pertaining to the total capitalization of a cryptocurrency’s price, Market Capitalization is one of the ways that the relative size of a cryptocurrency could be determined. 

In general, prior to the booming of the cryptocurrency industry, Market Capitalization is the total dollar market value of a company’s outstanding shares of stocks. This is calculated through the multiplication of the total number of the outstanding shares of a company with the present market price of a share.

For instance, a company having 10 million shares which it sells at $100 each would have a market cap of $1 Billion. May it be in the Stock Market or in crypto trading, the figure is used by the investment community to assess the company’s size rather than relying on sale.

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