1. What is Market Capitalization?

Market capitalization (market cap) is the total market value of a cryptocurrency's circulating supply. It's calculated by multiplying the current price of a single unit by the total number of coins or tokens in circulation.

2. How Does the Calculator Work?

The calculator uses the market cap formula:

Where:

• \( Price \) — Current price of one XRP in USD
• \( Circulating\ Supply \) — Number of XRP currently in circulation

Explanation: This simple calculation gives you the total valuation of XRP in the market at any given time.

3. Importance of Market Cap

Details: Market cap helps investors compare the relative size of different cryptocurrencies. It's a better indicator of value than price alone, as it considers both price and supply.

4. Using the Calculator

Tips: Enter the current price of XRP in USD and the circulating supply. The calculator will instantly compute the market capitalization.

5. Frequently Asked Questions (FAQ)

Q1: Why is market cap important?
A: Market cap shows a cryptocurrency's dominance and stability in the market. Larger market cap coins are generally more stable but may have less growth potential.

Q2: What's the difference between market cap and fully diluted valuation?
A: Market cap uses circulating supply, while FDV uses total supply (including coins not yet released).

Q3: How often does XRP's circulating supply change?
A: XRP's supply changes as the Ripple company releases coins from escrow, though the total supply is fixed at 100 billion.

Q4: Where can I find accurate circulating supply data?
A: Reliable sources include CoinMarketCap, CoinGecko, and the official Ripple website.

Q5: Does market cap determine a cryptocurrency's rank?
A: Yes, cryptocurrencies are typically ranked by market capitalization, with Bitcoin usually having the highest.