A coin's market capitalisation (market cap) is the price of one unit multiplied by the number of units in circulation. It shows what all the units would be worth together at the latest price. Market cap is the most common way to compare the size of different cryptocurrencies.
How is it calculated?
The formula is simple: price × circulating supplyCirculating supplyHow many units of a cryptocurrency already exist and are in holders' hands, the figure used to calculate its market capitalisation..
For example, if 10 million units of a coin are in circulation and each costs ISK 500, the market cap is ISK 5 billion. If the price doubles, so does the market cap.
Some price sites also show a fully diluted valuation. That uses the maximum supplyMaximum supplyThe largest number of units of a cryptocurrency that can ever exist under its rules, such as 21 million for bitcoin. instead, meaning every unit that will ever exist.
What market cap doesn't tell you
Market cap is not the amount of money people have put into a coin. Nor is it what you would get if everyone sold at once. The price comes from the latest trades, and if many people try to sell at the same time, it falls fast.
A low price per unit doesn't make a coin cheap. A coin costing one króna can have a higher market cap than one costing a million, if there are enough units.
Coins with a small market cap and low trading volumeTrading volumeThe total value of all trades in a particular coin over a set period, usually the last 24 hours. tend to swing more, and their price is easier to move.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.