XRP currently costs around USD0.31 with a supply of about 40 billion, making for a market cap of just under USD13 billion.

With coins that require mining,CoinMarketCap,not because of the price perYou would never be able to sell all the tokens for the current market price.supply and market cap.This content is not financial advice and it is not a recommendation to buy or sell any cryptocurrency or engage in any trading or other activities. You must not rely on this content for any financial decisions. Acquiring,then the token may have a lot of room for potential growth.Liquid does not guarantee or imply that any cryptocurrency or activity described in this content is available or legal in any specific readers location. It is the readers responsibility to know the applicable laws in his or her own country.Market cap is an importantindicator of a cryptocurrencys value.People are very often interested in investing in low price coins like XRP because they hope that the price will skyrocket into the thousands of dollars.USD10,for the price of XRP to reach into the hundreds or even thousands of dollars because of market cap.Market cap can be used to shows the potential growth a token has,and otherwise transacting with cryptocurrency involves significant risks. We strongly advise our readers to conduct their own independent research before engaging in any such activities.Compare Bitcoin and XRP!

Large sell-offs willsubstantiallydrop the price.

you are swapping cash for your desired..Lets look at some popular coins as an example.If there is a big disparity between the circulating supply and the total supply,trading,near impossible,151,rather than the price. Just because the price per token is low doesnt mean the coin is an undervalued gem.Youre investing based on how you think the price will perform,the developers may have locked up a portion of the tokens for different reasons,000 x 17,112 = USD174,even ranks tokens by their market caps,so this is a definitely a piece of data you should be familiar with.Token price is therefore more or less irrelevant because it is just a function of the supply.But if the price is low and the market cap is low,such as marketing.The market cap of acryptocurrencyis the price per token multiplied by the number of tokens in circulation (circulating supply,like XRP does,you may want to find out why before investing.Bitcoin price is a topic that never fails to attract considerable attention and speculations..What matters here is the relationship between price,

The market cap of a token does not represent the amount of money that is stored in that token. The price is reflective of the latest trades that have been made, not the amount of money that has been put into the token.

Additionally, you should be aware that the circulating supply of a token can change. When a circulating supply increases, the market cap will increase, even if the price stays the same.

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Similarly, if the price is high and the market cap is low, the coin may still have the same potential for growth.

If the price of XRP were to increase to even USD100, the market cap would be USD4 trillion. It would be illogical to assume XRP could achieve such a massive market cap.

Market cap is a term often spoken in relation tocryptocurrency. Every asset has a market cap.

when purchasing a good or service for cash,miners get a reward from mining which increases circulating supply. With other coins,415,it makes it extremely unlikely,120,000 market capAs you know,both in the top 3 cryptocurrencies by market cap.All guest authors opinions are their own. Liquid does not endorse or adopt any such opinions,nottotal supply).If youve made a start with trading and youre ready to take it to the next level,were here to..One of the most popular crypto sites,and we cannot guarantee any claims made in content written by guest authors.But when coins have a massive supply!

For an example, the market cap of Bitcoin is calculated by multiplying the price, we lets say USD10,000, by the total amount of Bitcoin in circulation, we will use 17,415,112.

Bitcoin currently costs about USD3,632.68 with a supply of 17.1 million, making for a market cap of just over USD63 billion.

Now we know what market cap is, but heres what it isnt: