Comparison of two made-up coins showing that a $0.001 coin can have a larger market cap than a $100 coin
"This coin costs $0.001, so it can easily reach $1!" Sentences like this fill social media, and they trick people every cycle. A low price per coin does not mean a coin is cheap, and a high price does not mean it is expensive. The number that gives context is the market capitalization.
In this guide you will learn what market cap is, how it is calculated, the difference between circulating, total and fully diluted supply, why a $0.001 price says almost nothing on its own, and how to use market cap, volume and supply to read a coin more carefully. Every example uses made-up coins and numbers you can check.
Last updated: November 2026.
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