What is the difference between market cap and diluted market cap in the context of cryptocurrencies?

1 answers

• Dec 15, 2021 · 3 years ago
  Market cap and diluted market cap are two metrics that help investors understand the value and potential of cryptocurrencies. Market cap is calculated by multiplying the current price of a cryptocurrency by its total circulating supply. It represents the total value of all the coins in circulation. Diluted market cap, on the other hand, takes into account the potential future supply of a cryptocurrency. It includes all the coins that could potentially be created in the future. Diluted market cap provides a more conservative estimate of a cryptocurrency's potential value, as it considers the maximum supply that could be in circulation. It's like taking into account all the possible outcomes and being prepared for the worst. When evaluating cryptocurrencies, it's important to consider both market cap and diluted market cap to get a comprehensive understanding of their value and potential.
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