Market cap and total supply correlation on price

The market capitalization (market cap) of a company is calculated by multiplying the current share price by the number of shares outstanding. This value represents the total dollar market value of a company's outstanding shares of stock.

The relationship between market cap and the total supply of a cryptocurrency is that market cap is a function of the price of the coin/token and the total outstanding supply. Market cap estimates a company's value by extrapolating what the market thinks it is worth for publicly traded companies and multiplying the share price by the total number of available shares.

In the case of cryptocurrencies, market cap is calculated by multiplying the current price of the coin/token by the total circulating supply. This means that an increase in the total supply of a cryptocurrency will generally result in a decrease in its market cap, and vice versa.

However, it's important to note that market cap is not the only factor to consider when evaluating a cryptocurrency's worth. Other factors such as the project's team, technology, adoption, and use cases should also be taken into account.