How Are Cryptocurrency Prices Calculated?
Cryptocurrency prices are determined by aggregating trading data from multiple exchanges. The methodology involves:
- Collecting real-time buy/sell orders across partnered platforms
- Applying volume-weighted averages to minimize outlier impact
- Cross-verifying with liquidity metrics to ensure price accuracy
👉 Discover real-time crypto price tracking
Market Capitalization Explained
Market capitalization represents the total value of a cryptocurrency network:
Market Cap = Current Price × Circulating SupplyKey points:
- Serves as a comparative metric among cryptocurrencies
- Updated continuously as prices fluctuate
- Helps investors assess project scale and maturity
Understanding Cryptocurrency Supply Metrics
| Metric | Definition | Importance |
|---|---|---|
| Circulating Supply | Coins actively available in public markets | Used for market cap calculations |
| Total Supply | All minted coins excluding verified burns | Shows current issuance status |
| Max Supply | Theoretical maximum coin limit | Indicates inflationary design |
Why Circulating Supply Matters for Market Cap
Using circulating supply (rather than total supply) provides more accurate valuations because:
- Locked or reserved coins don't affect market prices
- Mirrors traditional market's "public float" concept
- Prevents artificial inflation of perceived value
Coins vs Tokens: Key Differences
Coins:
- Operate on native blockchain networks
- Function as independent currencies
- Examples: Bitcoin, Litecoin, Monero
Tokens:
- Built atop existing blockchain platforms
- Often represent assets or utilities
- Examples: ERC-20 tokens on Ethereum
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CoinMarketCap Listing Criteria
Cryptocurrencies must meet these requirements:
- Active trading markets with legitimate volume
- Transparent blockchain explorer data
- No evidence of fraudulent activity
- Developer/community engagement
Exchanges must demonstrate:
- Real trading volume
- Secure infrastructure
- Regulatory compliance where applicable
Frequently Asked Questions
Why exclude no-fee markets from calculations?
Zero-fee markets enable artificial volume inflation through wash trading, making accurate volume assessment impossible.
How can I buy cryptocurrency?
While we don't sell directly, our markets sections show all available trading pairs for each cryptocurrency.
What time zone does CoinMarketCap use?
All data reports in UTC (Coordinated Universal Time) unless specifically noted otherwise.
How does the 24-hour change work?
This percentage reflects price movement across a rolling 24-hour window, continuously updated.
Why show questionable projects?
We maintain neutral listing policies—users should conduct their own research using our tools and data.
What if a coin isn't listed?
New listings undergo verification processes. Submit requests through official channels after reviewing our criteria.
API Availability
Our comprehensive API offers programmatic access to cryptocurrency data for developers and enterprises.
Content Usage Policy
Academic/journalistic use is permitted with proper attribution to coinmarketcap.com. Commercial use requires explicit permission.
Why show supply question marks?
These indicate unverified circulating supplies—we display them transparently while working to confirm accurate data.