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Intermediate 6 min read

Market Cap & Volume

How mcap is calculated, and the mcap-vs-volume ratio that exposes controlled coins.

1The math

Market cap = total token supply × current price (derived from the pool ratio). If a coin trades at a 100k mcap and you hold 1k worth, you own 1% of the entire supply. Simple — but it means a 1B mcap needs enough real buyers to justify that number at exit, not just on paper.

2The volume test

A young coin's volume should generally be HIGHER than its market cap — the younger the coin, the bigger the gap should be. A fresh coin sitting at 1.5M mcap with only 2M lifetime volume means tokens haven't changed hands enough: a few early wallets are sitting on massive unrealized profits, ready to dump on you. Volume far below mcap on a new pair is one of the clearest bundle warnings.

3Makers and holders

Check makers (unique wallets that traded the coin) and holders on your terminal. Numbers that look inflated for the market conditions usually are — bots can fake both. Treat every metric as one input in a bundle of evidence, never as a single green light.

Learning material summarized from the free "A Complete (Meme)Coin Guide" by @spyzer — shared with full credit.

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