It’s not just about the price — it’s about the math behind the madness.

💰 What Is Market Cap in Crypto?

Market Cap = Current Price × Circulating Supply

It’s how we measure the total value of a cryptocurrency.

Example:

If a coin costs £2

And there are 1 billion coins in circulation
👉 Market Cap = £2 billion

It’s like the scoreboard for crypto — bigger market cap = higher ranking.

🧮 What Is Circulating Supply?

This is the number of coins that are currently out there in the wild, not locked up, burned, or stashed in developer wallets.

It’s basically:

How many coins are actually out there and available?

The higher the circulating supply, the more diluted the value per coin can be — unless there's huge demand.

📈 Price Doesn’t Mean Everything

Let’s compare two hypothetical coins:

                                           Coin A                  Coin B

Price                                 £0.50                 £500

Circulating Supply    10 Billion            10,000

Market Cap                  £5 Billion           £5 Million

Even though Coin B has a high price, Coin A is worth more overall in the market.

💡 Don’t fall for “cheap = it’ll 100x easily!” — price alone means nothing without supply and demand context.

📦 What’s the Difference Between Total Supply & Max Supply?

Total Supply: All coins that currently exist (including ones locked or staked).

Max Supply: The absolute maximum that will ever exist (if capped).

Example:

Bitcoin’s max supply = 21 million

That scarcity is part of why it's so hyped.

📊 How Are Coins Ranked?

Coins are ranked by market cap. That’s why:

DOGE is often in the top 10, even if it’s “just a meme.”

A £0.0001 coin with trillions in supply can still rank high.

🛑 Watch Out for These Red Flags

🚩 “Only costs a fraction of a penny! Imagine if it hits £1!”
(No. Check the supply. That would mean a multi-trillion market cap.)

🚩 No max supply or info = inflation risk.

🚩 Locked tokens secretly released = surprise dumps.

Always check supply before dreaming of moons 🚀

Speaking of red flags, lets look into common scams & staying safe.