Definition
Market Capitalization. The total value of all units of a cryptocurrency in circulation, calculated as: Current Price × Circulating Supply. Used to compare the relative size of different cryptocurrencies.
Why It Matters
Market cap is a more meaningful measure of a cryptocurrency's size than its price per coin. A $0.001 token with 1 trillion supply may have a larger market cap than a $100 coin with 1 million supply.
Example
If Bitcoin trades at $60,000 and there are 19.5 million BTC in circulation: 60,000 × 19,500,000 = $1.17 trillion market cap.
Related Terms
Bitcoin
Altcoin
Tokenomics
Bull Market