In the stock market, the market cap is the total monetary market value of all of a company’s outstanding shares. Market capitalization, popularly referred to as ‘market cap,’ is calculated by multiplying the current market price of a single share of a company by the total number of outstanding shares of the company. For instance, a company with 5 million shares each with a market price of $45 would have a market cap of $225 million. For the investment community, market capitalization is used to measure a company’s size; in a takeover bid, the buyer uses the market cap to determine whether the subject of the acquisition represents good value. Cryptocurrency Market Capitalisation Cryptocurrency market capitalization represents the total value of the cryptocurrency. Whereas market capitalization in the stock market is calculated by multiplying the current share price with total outstanding shares, market capitalization in the crypto realm is calculated by multiplying the current price of the cryptocurrency with the total number of coins in circulation. Bitcoin’s market capitalization, for instance, is determined by multiplying the current number of existing coins, over 18 million, by the price of Bitcoin at the particular moment. Since the price of Bitcoin fluctuates regularly, so does its market cap accordingly, e.g., when the price of Bitcoin fluctuated between $45,000 and $55,000, the market cap ranged between $846 billion and...
