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market cap

What does market cap mean?

Short for market capitalisation, the total value of a cryptocurrency calculated as its price multiplied by circulating supply, used to rank and compare coins.

"Don't just look at price — a low price with a huge supply can mean a big market cap."

Origin

Standard finance metric applied to crypto; commonly shortened to 'mcap'.

Frequently asked questions

What is market cap in crypto?
It is a coin's total value, calculated as its price multiplied by its circulating supply, and used to rank and compare cryptocurrencies.
Why is market cap more useful than price?
Price alone is misleading because a cheap-looking coin with a huge supply can still have a very large market cap and valuation.
What is the difference between market cap and fully diluted valuation?
Market cap uses circulating supply, while fully diluted valuation (FDV) uses the total eventual supply including tokens not yet in circulation.
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Slang definitions: FreeDict original editorial.