Study Market Cap in Cryptocurrency market

These days I am learning crypto terms so I thought that all of us should have complete knowledge of it. That's why I am providing complete detail about crypto terms.

Market capitalization is simply the sum of the value of all existing shares multiplied by the share price at the time.

Let me give you an example so that you can understand it fully, Suppose that Company A's market valuation would be $200 million if it had 10 million outstanding shares selling at $20 a piece.

The trade has chosen market cap as a means to track the worth of different assets because crypto assets trade around-the-clock. For instance, the market capitalization of bitcoin (BTC) as of this writing is over $444 billion. In order to get at this figure, we multiply the current bitcoin price of $23,003 by the estimated 19.1 million total bitcoins ever created. This function can be repeated for each asset. For instance, ethereum has a $196 billion market valuation.

These assets generally fluctuate in value according to the performance of these platforms or their perceived momentum, but they do not grant any ownership or governance rights. These businesses actually contend that their exchange tokens are not securities. You are not automatically a shareholder of an airline if you buy miles from them. Understood!

Regarding market cap, I also want to briefly discuss the distinction between fully diluted and free float. The total amount of shares that can be traded on open markets or over-the-counter desks is referred to as the free float in the realm of tradable assets.This frequently excludes tightly held shares, such as those held by founding family members or shares that the company's directors or executives have locked up. The total number of shares that could be traded in the event that all employee options and convertible debt have been exercised is known as being fully diluted. These statistics can vary in conventional stock markets.

I hope you understood market cap and also the concept of fully diluted and free float.

Thank you.