What is Market Cap?

Market cap is the total market value of a cryptocurrency calculated as price × circulating supply. It is the standard metric for ranking and comparing digital assets.

How does Market Cap work?

Multiply the current price of one token by the total number of tokens in circulation. This number updates in real time as price moves.

Why does Market Cap matter?

It shows relative size between assets. A $1B market cap project is far smaller than a $1T one regardless of token price.

However it doesn't reflect actual invested capital.

Key features of Market Cap

Price × circulating supply
Used to rank cryptocurrencies
Fluctuates with price in real time
Does not measure invested capital

Examples of Market Cap

Bitcoin at $50,000 with 21 million supply = $1.05 trillion market cap.

A token with 1 billion supply at $1 has the same market cap as one with 1 million supply at $1000.