Understanding Market Capitalization/Market Cap/MCAP
Market Capitalization, also referred to as market cap or MCAP, is the total value of a cryptocurrency when all of its coins are combined.
It is commonly used as a measure to gauge the popularity and attractiveness of specific cryptocurrencies.
CoinMarketCap, a well-known website, calculates market cap by taking the volume weighted average of prices from different exchanges.
To determine market cap, the price of a single coin is multiplied by the total number of coins in circulation.
As a result, market cap can be highly volatile, similar to the price of a cryptocurrency, and can experience frequent fluctuations.
Cryptocurrencies with a market cap exceeding $10 billion are categorized as large-cap and are generally considered to be safer investments. However, this does not imply that they are immune to volatility.
While some argue that large-cap cryptocurrencies can act as safe havens, critics hold a different perspective on this matter.
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