Market Capitalization
Definition
Market capitalization (market cap) is the total value of a cryptocurrency, calculated by multiplying the current price by the circulating supply. It is the most widely used metric for ranking and comparing cryptocurrencies. Market cap categories include large-cap (>$10B), mid-cap ($1B-$10B), and small-cap (<$1B). Fully diluted valuation (FDV) considers the maximum token supply instead and can reveal potential dilution risk.
Why Does This Matter?
Understanding Market Capitalization is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like Market Capitalization feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.
Related Terms
Circulating supply is the number of cryptocurrency tokens that are currently ava...
Fully Diluted Valuation (FDV) is the theoretical market cap of a cryptocurrency ...
Trading volume is the total amount of a cryptocurrency traded within a specific ...