# Article Introduction
**Understanding Cryptocurrency Market Cap and Its Functionality**
This comprehensive guide explores cryptocurrency market capitalization, a fundamental metric for evaluating digital asset value and market significance. Using the formula Market Cap = Price × Circulating Supply, the article demystifies how market cap functions as an essential tool for investors on Gate to assess cryptocurrency size, stability, and investment potential. Designed for both novice and experienced traders, this resource addresses key questions about market cap's relationship to price volatility, investment risk, and portfolio performance. The guide examines how market cap rankings facilitate cryptocurrency comparison, influence investor sentiment, and reflect broader market trends, while emphasizing that successful investment decisions require analyzing market cap alongside technology fundamentals, adoption rates, and team credibility for comprehensive evaluation.