peanut⭐️
@coconutrinds
GM farcaster! going to spend my day staring at the warplet and figuring out what an MCAP is😆 what are we doing today?
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Toluwanimi Ajisafe
@retalien
It is abbreviated to Market Cap (Market Capitalisation) It shows the total value of a particular coin or token in circulation. It's calculated by multiplying the current price of that coin by the total number of the coin currently in circulation. The lower the MCAP, the higher it’s worth, because in economics the higher the demand, the higher the price and the lower the supply, if I remember correctly 😂
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peanut⭐️
@coconutrinds
and i’m assuming circulation means ‘actively being traded’? thank you!
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Toluwanimi Ajisafe
@retalien
Not necessarily, circulation means the coin or token in the holders’ hands. It’s like I have two 100 naira notes and you have four 100 naira notes, the market cap of the 100 naira note is 800 naira.
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