What is a Market Cap in Crypto?

The significance of market cap is not just in its ability to provide a quick valuation snapshot but also in its role as a risk indicator. Typically, cryptocurrencies with larger market caps are considered more stable and less volatile, making them potentially less risky investments than those with smaller market caps. For example, the Solana market cap represents the total value of all Solana tokens in circulation, providing insights into its market position and investor confidence.