How does CoinMarketCap calculate the market capitalization of DeFi tokens?

3 answers

• md armaanDec 03, 2023 · 2 years ago
  CoinMarketCap calculates the market capitalization of DeFi tokens by multiplying the circulating supply of a token by its current price. The circulating supply represents the number of tokens available in the market, while the price is determined by the trading activity on various exchanges. This calculation provides an estimate of the total value of all tokens in circulation for a specific DeFi project.
  407

  204
• Jake ReyesDec 28, 2021 · 4 years ago
  To calculate the market capitalization of DeFi tokens, CoinMarketCap considers the circulating supply and the price of each token. The circulating supply is the total number of tokens available for trading, while the price is determined by the supply and demand dynamics on the market. By multiplying these two factors, CoinMarketCap can estimate the market value of a DeFi token and rank it accordingly.
  404

  135
• OCowApr 20, 2024 · 2 years ago
  When it comes to calculating the market capitalization of DeFi tokens, CoinMarketCap takes into account the circulating supply and the price of each token. The circulating supply represents the number of tokens actively available for trading, while the price is determined by the buying and selling activity on various exchanges. By multiplying these two factors, CoinMarketCap provides an approximation of the market value of a DeFi token. It's important to note that market capitalization can fluctuate due to changes in circulating supply and price.
  552

  138