Market Capitalizations represents total value of outstanding coins in the market,  calculated by multiplying current price with token/coins

Author - Coinfinancemoney (Tushar Mistari)

Image Source - Google & Canve

Market cap indicate the total cryptocurrency's relative size and market importance compared to other currencies

Cryptocurrencies are also ranked by their  market cap, coins with higher market cap are considered as more significant & potentially more stable

Market cap is affected  by the supply and the  price of the cryptocurrency. Changes  in either of these factors  will impact the market cap

Market cap only represents the value of the circulating supply, not its total value, which includes coins/tokens that might be locked up or not yet released

Market cap can reflect the overall sentiment of investors towards a particular cryptocurrency or the entire crypto market

Market cap is a concept which is widely used to compare the size of cryptocurrencies with traditional assets like stocks and commodities

Market cap calculation is not always accurate due to discrepancies in reported supply or the accuracy of the data sources

Cryptocurrency market cap can be highly volatile, as both prices and circulating supplies can change rapidly

While market cap is a valuable metric, it should not be the only factor considered when evaluating a cryptocurrency