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Market cap is the total value of a cryptocurrency, calculated as the current price multiplied by the circulating supply of coins.
Market capitalization (market cap) is the standard yardstick for ranking and comparing the size of cryptocurrencies. It is computed by multiplying the current market price of a coin by its circulating supply — the number of coins that are publicly available and unlocked.
Market cap matters because price alone is meaningless. A token priced at $0.001 with a 10 trillion circulating supply is a $10 billion asset — far larger than a token priced at $100 with a 1 million circulating supply ($100 million). Market cap normalizes for these differences so investors can compare networks on equal footing.
There are three common variants: circulating market cap (price x circulating supply), fully diluted valuation (price x max/total supply, or FDV), and realized cap (each coin valued at the price when it last moved). Each tells a different story. A token with a small circulating cap but a huge FDV is often a slow-release inflation risk.
Crypto market cap is calculated as current price multiplied by circulating supply: Market Cap = Price x Circulating Supply. For example, a coin trading at $5 with 20 million coins in circulation has a $100 million market cap.
Market cap uses circulating supply — only coins that are unlocked and tradable. FDV uses max or total supply, assuming every future token exists today. A wide gap between the two signals that large token unlocks lie ahead, which can dilute existing holders.
A higher market cap generally means a larger, more established, and less volatile asset — Bitcoin and Ethereum sit at the top for this reason. But market cap alone says nothing about technology, adoption, or fair value. A token can have a large cap and still be overvalued.
Price ignores supply. A $0.0001 coin with a 1 trillion token supply is a $100 million asset, while a $10 coin with a 1 million supply is only a $10 million asset. Market cap multiplies price by supply so you compare total network value, not per-coin price.
A liquidity pool is a smart-contract vault of paired tokens that decentralized exchanges use to enable automated, peer-to-contract trading without an order book.
Tokenomics is the economic design of a cryptocurrency token — its supply schedule, distribution, utility, incentives, and value-capture mechanics.
A whale is an individual or entity that holds enough of an asset to move its price with a single buy or sell, often tracked via on-chain data.
Real-time charts, portfolio tracking, whale alerts, and AI insights — built for traders who use terms like this every day.