Market Cap
Overview
Market Capitalization or "market cap" stands as the total market value of all of the tokens. It can be calculated by multiplying the total number of tokens in the market by the current market price of a single one.
💡 How can I use it?
This metric can provide powerful insight into the overall value and popularity of the token. In general, a token with a higher market cap is considered to be more valuable and widely held than a token with a lower market cap. This can be useful information when deciding whether to buy or sell a particular token.
This metric also allows you to compare the relative size and value of different tokens. For example, if you are considering investing in multiple tokens, you can use the market cap to compare the relative size and value of each token and make more informed decisions about which ones to invest in.
In the cryptocurrency space for instance, Bitcoin has the highest market capitalization followed by Ethereum. Many Ethereum followers that call for the “Flippening” refer to the moment when the market capitalization of Ethereum (ETH) surpasses the market capitalization of Bitcoin (BTC). This would mean that ETH would become the largest cryptocurrency by market cap, and would likely lead to a significant shift in the broader cryptocurrency market.
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