1. What is Market Capitalization?

Market capitalization (market cap) is the total market value of a cryptocurrency's circulating supply. It's a key metric used to rank cryptocurrencies by their relative size in the market.

2. How Market Cap is Calculated

The calculator uses the simple formula:

Where:

• \( Price \) — Current price of one unit of the cryptocurrency
• \( Circulating\ Supply \) — Number of coins/tokens currently in circulation

Explanation: This calculation gives the theoretical total value of all coins if they were sold at the current market price.

3. Importance of Market Cap

Details: Market cap helps investors understand the size and performance of a cryptocurrency relative to others. It's often used to categorize cryptos as large-cap, mid-cap, or small-cap.

4. Using the Calculator

Tips: Enter the current price per XRP in USD and the circulating supply of XRP. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is market cap important in crypto?
A: It helps assess a cryptocurrency's relative size, stability, and growth potential compared to others in the market.

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 is mostly fixed, with small changes occurring as the Ripple company releases coins from escrow.

Q4: Can market cap alone determine a crypto's value?
A: No, it should be considered alongside other factors like technology, use case, and adoption.

Q5: Where can I find current XRP price and supply data?
A: Reliable sources include CoinMarketCap, CoinGecko, and crypto exchange APIs.