Market Capitalization
Total value of an asset, calculated by price × circulating supply.
Beginner-friendly explanation
A crypto’s market capitalization is its total value on the market. It’s calculated by multiplying the current price of a token by the number of tokens in circulation. Example: If a token is worth €10 and there are 10 million in circulation, the market cap is €100 million.
Intermediate-level insight
Market cap is a key metric used to rank and compare crypto projects. A high market cap may suggest greater stability, but also slower growth potential. It’s widely used in rankings like CoinMarketCap or CoinGecko.
Advanced perspective
Market cap can be misleading: It doesn’t always reflect real market liquidity; It can be skewed by artificial volume or locked/unavailable supply. Advanced analysts also consider Fully Diluted Valuation (FDV), actual token distribution, and the impact of programmed inflation in smart contracts.
Trading Basics
market cap, capitalization, valuation, crypto ranking, project size, token supply, FDV