In the world of cryptocurrencies, understanding Market Capitalization, Total Supply, and Circulating Supply is fundamental for evaluating any digital asset before investing. These metrics reflect a coin’s strength, distribution, and market liquidity.
1. Market Capitalization
Market capitalization represents the total value of all coins currently available in the market. It is calculated using the formula:
Practical Example: Bitcoin
Current price of Bitcoin (BTC): $66,000
Circulating supply: 19,000,000 BTC
Bitcoin’s market capitalization at this price is $1.254 trillion, reflecting its market size and strength.
2. Total Supply
Total Supply represents the maximum number of coins that can exist, whether currently circulating or reserved.
Bitcoin’s total supply: 21,000,000 BTC
The difference between circulating and total supply (2 million BTC) indicates coins yet to be mined, highlighting scarcity.
3. Circulating Supply
Circulating Supply is the number of coins currently available for trading in the market.
Circulating supply of Bitcoin: 19,000,000 BTC
4. Accessing This Data on Binance
Binance provides accurate, real-time information for all cryptocurrencies:
Open the Binance website or mobile app.
Search for the cryptocurrency, e.g., BTC.
On the coin’s page, you’ll find:
Market Cap → Current market capitalization.
Circulating Supply → Coins in circulation.
Total Supply → Maximum number of coins.
You can also see daily trading volume, high/low prices, and liquidity metrics to assess market activity.
Conclusion👇
Understanding a cryptocurrency’s Market Cap, Total Supply, and Circulating Supply is essential for evaluating its strength, scarcity, and investment potential. Bitcoin at $66,000 demonstrates how these metrics reflect market size and scarcity, empowering investors to make informed decisions based on reliable data.
