Grassroot Crypto Education (Vol.3) - Crypto Market Capitalization and its Elements: Practical use of Tools to Explore different Cryptocurrencies | 10% Payout to @steemkidss

Good evening wonderful people of @steemkidss community...it is a privilege to submit my participation on this vol3 of grassroot crypto academy...I want to give thanks to our wonderful professor @fredquantum for this amazing topic The topic for this vol 3 is MARKET CAPITALIZATION OF CRYPTOCURRENCY. we shall discuss this in the subsequent paragraph below.

Market capitalization is one important factor in crypto currency...it can be said as the total value of a CRYPTOCURRENCY .
Market capitalization is derived from multiplying a coin current price at that time and it how much is that coin in circulation.
Making use of ethereum market capitalization as an illustration of what we are discussing we can see that the market capitalization is gotten from the the current price which is $3021.23 and the coins in circulation which is 119,459,037.81 ETH.
Which is 3021.23x119,459,037.81 ETH=$360 billion..

Source

WHAT IS CURRENT PRICE AND CIRCULATION

When we say current price from my own understanding it is the price at which a coin or a CRYPTOCURRENCY is currently been traded in the exchange market.
For example can see above that ethereum is currently traded for $3,021.31 at the exact time wrote this post we can conclude that , that is ethereum current market cap.

CIRCULATION

When we also hear the word circulation we understand it means the availability of something. From my own understanding circulation in crypto currency means the availability or the supply of a coin in the crypto market.

HOW WE CAN CALCULATE THE MARKET CAPITALIZATION..

we can calculate market capitalization mathematically using the terms below
M=Cr×Cp
Where
M=MARKET CAPITALIZATION
Cr=CIRCULATION
CP=CURRENT PRICE
USING ethereum as an example I can calculate market capitalization of ethereum using the formula above ,where the circulation of ethereum is 119,459,037.81 ETH.and the current market price of ethereum is $3,021.31
Therefore
M=119,459,037.81x3,021.31=$360,922,783,078,which is we can say is approximately $360billion.we can see it easy to calculate Market capitalization right, yes it is.

Below is how I partook in this question I visited https://coinmarketcap.com/ and this appeared

Source
From the screenshot we can see that the 10th coin in rank is polkadot, from that I deduced the market capitalization,it current price and it circulation below

source
Here we can see that the above is how it analysis on coin market cap provdied.
We can calculate the market capitalization using the formula I deduced
M=Cr×Cp
M=MARKET CAPITALIZATION
Cr=CIRCULATION987,579,314.96
CP=CURRENT PRICE=21.25
Therefore
M=987,579,314.96×21.25=20,986,044.03
That is the market capitalization .

IN CONCLUSION

We can see that it is way more easier to understand and calculate market capitalization from the above. I want to specially thank everyone who read this post @Fredquantum