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Market capitalization: definition and meaning

Market capitalization is a coin's price multiplied by its circulating supply. It is a rough measure of size.

Why it matters

It helps compare projects, but it can be misleading when only a small share of coins trades.

Related terms

• Circulating supply
  Circulating supply is the number of coins that are currently available to trade, as oppose…
• Fully diluted valuation
  Fully diluted valuation (FDV) is price multiplied by the maximum or total future supply of…

Guides that explain more

• Market Orders vs Limit Orders
• What Is Market Capitalization in Crypto?

Educational content only, not financial advice.