Bhawana RakshitDec 18, 2021 · 3 years ago4 answers What role does market cap play in determining the price of digital currencies?
In the world of digital currencies, market capitalization (market cap) is often used as a measure of a cryptocurrency's value. But what exactly is market cap and how does it influence the price of digital currencies? How is market cap calculated and why is it important for investors and traders? What are the factors that can affect market cap and how does it relate to the price movements of digital currencies? Can a high market cap guarantee a high price for a digital currency? Let's dive into the role that market cap plays in determining the price of digital currencies.