Market Capitalization

Price x circulating supply. Tells you what the market values the project at.

Market cap = current price x circulating supply. BTC market cap 2T USD = top 8 companies in the world. Misleading for small tokens: 0.01 USD price x 1B supply = 10M USD cap, a small correction = -50%. Remember: market cap doesn't mean money invested - it's a market valuation that vanishes in seconds during panic.

In plain words

You multiply current price by circulating supply - that's the project's valuation. It's NOT money invested, just a theoretical value.

Example

BTC January 2025: 100k USD x 19.8M BTC = 1.98T USD market cap = ~5% of gold.

Also known as: mcap, market capitalization

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