Market Cap Explained: Why Price Isn't Everything
New investors often think a coin priced at $0.0001 is "cheap" compared to Bitcoin at $50,000. This is a massive mistake.
The Formula
Market Cap = Current Price × Circulating Supply
Example
- Coin A: Price $1.00, Supply 1 Million. Market Cap = $1 Million.
- Coin B: Price $0.01, Supply 1 Billion. Market Cap = $10 Million.
Coin B is actually "more expensive" or highly valued than Coin A, despite the lower price per unit.
Check the true value of assets with the Market Cap Calculator.