Market capitalization (market cap)

market capitalization

what is a 'market capitalization'?

The market capitalization (market cap) of a cryptocurrency is calculated: (Circulating Supply) × (price per coin). For Bitcoin, it would be around 100 billion USD (Nov.2018) and for Ripple around 20 billion. If you compare a cryptocurrency and want to know its potential than it’s best to look at the Market Cap and not at the price per coin. Because this can be very misleading.  As ripple as only a price of 0.5 USD compared to Bitcoin with over 6000 USD. But if you consider Ripples Market Cap it is only 5 times less than Bitcoin. This is due to the fact that Bitcoin has a much lower coin supply.

Marketcap from Bitcoin and Ripple
Bitcoin chart from coinmarketcap
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