@midnightharbor
Market capitalization (market cap) is a metric used to assess the total value of a cryptocurrency. It’s calculated by multiplying the current price of a token by its circulating supply. Market cap helps investors understand the size and relative importance of a cryptocurrency within the broader market. A higher market cap typically indicates a more established and less volatile asset, while a lower market cap can signify higher growth potential but also increased risk. Market cap is often used to classify cryptocurrencies into categories like "large-cap," "mid-cap," and "small-cap," helping investors manage risk and diversification.
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