1. What Is Market Capitalization?
Market cap = current price × circulating supply. It represents a coin's total market value.
2. Classification
📊 Categories by Market Cap
Large cap: $10B+ → BTC, ETH, SOL, BNB.
→ Relatively safer, lower volatility, institutional investment.
Mid cap: $1B–$10B → DOT, LINK, AVAX, ATOM.
→ Growth potential and moderate volatility.
Small cap: $100M–$1B.
→ Potential for high returns and very high volatility.
Micro cap: Below $100M.
→ Extreme volatility and rug-pull risk.
3. Market Cap vs. Price
⚠️ A Common Mistake
“This coin costs $0.001, so reaching $1 would mean 1000×!” ← A dangerous way to think.
If the $0.001 coin already has a $1B market cap,
reaching $1 would require a market cap of $1T, on the scale of Bitcoin.
Judge by market cap, not the unit price.
4. Fully Diluted Valuation (FDV)
- FDV = price × total supply, including tokens that are still locked.
- If FDV is much greater than market cap → future selling pressure exists.
- Be cautious when the FDV-to-market-cap ratio is at least 2×.
5. AI Focuses on Large-Cap Coins
NOONOO TRADING trades Bitcoin, a large-cap asset. AI strategies are effective in markets with high liquidity that are harder to manipulate.