Briefly.
Market cap is the total value of all coins at their current price - end.
For example, now twt costs $1 and there are 1 billion coins in circulation, which means the capitalization is 1 billion.
If tomorrow there is a sharp demand for the coin and there is no supply (holders and funds will not sell and provide the necessary supply), then the cost of TWT can become, for example, $2 and the capitalization will immediately become not 1 billion but 2. If the demand continues to be not provided with the necessary supply, the price will become $4 and the capitalization will immediately be 4 billion )))
At the same time, if tomorrow they want to pour 1 billion of new money into TTT, but at the same time the supply easily covers this demand (holders and funds will sell), then the price will decrease while the capitalization will increase in the new recalculation 😀
Many people confuse everything on the market, and it’s okay when new participants do it quietly in a chat among themselves, but it’s another matter when a person who doesn’t understand the market yells on YouTube to a large audience “TWT won’t make x10 because the cap is huge” - complete nonsense and an indicator of the incompetence of this talking head.
Let me remind you that Solana has 44 billion and in 2 months it shot up to $100, showing at least x5.
And tomorrow Solana can grow, for example, to $200 if the demand is high and the supply is small and the capitalization will be recalculated and will amount to 88 billion 😀 Although in fact, new money will come into it not 44 billion, but, for example, 1 .
Remember this is very important capitalization is just the cost of the coin multiplied by the number of coins and that's it )))
And the price is formed by the difference between supply and demand.
The price for any coin can be anything now, and the capitalization too, but if tomorrow there is a demand for this coin and there is no supply for it because the funds and holders do not want to sell, then the price can give any x depending on the difference in demand and supply, while the capitalization will be recalculated, the number of coins will also be multiplied by the new price of the coin and the capitalization will be at least x10 of yesterday's))
I wrote this post because I see that due to the incompetence of people who have a huge audience, market participants are misled and then tell each other nonsense that has nothing to do with reality.
