Bitcoin is the original cryptocurrency and it remains the go-to leader of the space.
As of this writing, the market capitalization of the world’s top digital currency is more than $156 billion, with a price per coin of more than $8,505. There are roughly 17.1 million BTC in circulation, according to coinmarketcap.com.
Market Capitalization is one way to rank the relative size of a cryptocurrency.
It’s calculated by multiplying the Price by the Circulating Supply.
Market Cap = Price X Circulating Supply.
Circulating Supply is the best approximation of the number of coins that are circulating in the market and in the general public’s hands.
Total Supply is the total amount of coins in existence right now (minus any coins that have been verifiably burned).
Max Supply is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency.
We’ve found that Circulating Supply is a much better metric for determining the market capitalization.
Coins that are locked, reserved, or not able to be sold on the public market are coins that can’t affect the price and thus should not be allowed to affect the market capitalization as well.
The method of using the Circulating Supply is analogous to the method of using public float for determining the market capitalization of companies in traditional investing.