What is Market capitalisation (market cap)?
Price multiplied by circulating supply: what the market says a coin is worth in total.
Market cap is the spot price times the number of coins circulating. It is the usual way to compare the size of two assets, because it accounts for both the price and how many units exist.
It is not the amount of money invested in a coin, and it is not what you could sell it for. A thin coin with a large cap can fall a long way on modest selling.
Related terms
- Circulating supplyBasics
The coins that exist and can be traded right now, as opposed to the total ever created.
Price times max supply: what the coin would be worth if every token existed.
- Trading volumeTrading
The value traded over a period, usually 24 hours; a measure of interest and turnover.