Market Cap (Market Capitalization)

The total value of a cryptocurrency, calculated by multiplying price by circulating supply.

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Explained Simply

Market cap = current price × circulating supply. It's the standard way to rank cryptocurrencies by size. Bitcoin has the largest market cap (~$1.5T+). Market cap categories are roughly: mega-cap ($100B+), large-cap ($10B-$100B), mid-cap ($1B-$10B), and small-cap (under $1B). Smaller market caps generally mean higher risk and volatility. Fully diluted valuation (FDV) includes all tokens that will eventually exist, not just circulating ones.

Example

If ETH trades at $3,000 with 120M coins in circulation, its market cap is $360 billion.

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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.