What is Market Cap?
The total market value of a cryptocurrency, calculated by multiplying price by circulating supply.
Market Cap Explained
Market capitalization (market cap) is the total value of a cryptocurrency in circulation. It is calculated by multiplying the current price of a single token by the total circulating supply. Market cap is a widely used metric to compare the relative size of different cryptocurrencies and assess potential investment opportunities. In the Floops protocol, market cap directly influences the dynamic lock period.
Key Characteristics
- Key metric for comparing crypto assets
- Calculated as Price × Circulating Supply
- Does not indicate liquidity or price stability
- Used by Floops to determine lock periods
Real-World Example
If FLPS trades at $0.001 with 1 billion tokens in circulation, the market cap is $1 million. As the price rises to $0.01, the market cap becomes $10 million.
Related Terms
Frequently Asked Questions
What does Market Cap mean?
The total market value of a cryptocurrency, calculated by multiplying price by circulating supply.
How does Market Cap work in DeFi?
Market capitalization (market cap) is the total value of a cryptocurrency in circulation. It is calculated by multiplying the current price of a single token by the total circulating supply. Market cap is a widely used metric to compare the relative size of different cryptocurrencies and assess potential investment opportunities. In the Floops protocol, market cap directly influences the dynamic lock period.
Can you give an example of Market Cap?
If FLPS trades at $0.001 with 1 billion tokens in circulation, the market cap is $1 million. As the price rises to $0.01, the market cap becomes $10 million.
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