Market cap explained for meme coins
2 min readIn short
Market cap is the price of one coin times the total supply. It shows how big a coin is. Two coins with the same price can have very different market caps, so compare market caps, not prices.
Why not just look at price?
A coin priced at $0.0001 isn't cheap if a billion coins exist. Market cap puts every coin on the same scale.
Market cap on ArkhamPad
New coins start at $4.5K and graduate at $7.5K. Limit orders and alerts on ArkhamPad are set by market cap for the same reason.
Market cap vs liquidity
Liquidity is how much money is actually there to trade against. A big market cap with little liquidity means prices move a lot on small trades.
FAQ
What is FDV?
Fully diluted value: the price times every coin that can ever exist. For ArkhamPad coins the supply is fixed, so the two are the same.