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How big, strong and stable a particular coin or token is in the cryptocurrency market cannot be judged by its single price alone. Because, a coin worth $1 can be much larger and more influential in the market than another coin worth $1,000. The mathematical measure used to accurately measure this true size, total value and market position of a cryptocurrency is called Market Capitalization or Market Cap for short. Simply put, it is the combined total financial value of all coins of a particular cryptocurrency currently in the market. The formula for calculating market capitalization is very simple and is based on two components. If the current price of a coin in the market is multiplied by the total circulating supply of that coin or the total number of coins active in the market, then the market cap of that cryptocurrency is obtained. For example, let's say the current price of a coin called 'A' in the market is $2 and there are a total of 5 million pieces of this coin in circulation in the market. Then the market cap of that coin will be ($2 × 50,00,000) i.e. $10 million. Because of this calculation, it can be seen that even though the unit price of a coin is low, if its circulating supply is large, its overall market cap can be ranked after Bitcoin or Ethereum. Based on market cap, the crypto market is mainly divided into three categories, which helps investors reduce risk. The first is large-cap, which includes the top cryptocurrencies like Bitcoin or Ethereum. Usually, coins with a market cap of more than $10 billion or $10 billion are placed in this list. They are very stable and have a relatively low risk of major collapses. The second is mid-cap, whose market cap is between $1 billion and $10 billion. These coins have a much higher growth potential, but are also slightly riskier than large-cap coins. The last one is small-cap, with a market cap of under $1 billion. They are highly volatile or risky; they can make huge profits overnight or fall to zero at any moment if the market fluctuates a little. In short, market capitalization is a very important dashboard or indicator of the cryptocurrency ecosystem. It is not just a number, but it indicates the overall confidence of investors in a particular project in the market and the amount of liquidity of that project. Before investing in any coin, smart investors always analyze its market cap and circulating supply in depth, rather than just falling for its cheap price. Because the larger the market cap, the more likely that coin will demonstrate its ability to survive in the long term, withstanding hacking, manipulation, or sudden market declines. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.