Market Cap
Table of contents
Market Cap, or market capitalization, measures the total value of a cryptocurrency or stock by multiplying its current price by its circulating supply. It helps gauge the relative size and importance of a project in the market.
Why It’s Useful
A higher market cap often signals a more established or trusted asset, while lower-cap projects may be riskier but have higher growth potential. Market cap is commonly used to categorize assets into large-cap, mid-cap, or small-cap groups.
Broader Relevance
In crypto, market cap is a quick way to compare different coins or tokens, assess dominance in the market, and understand how value is distributed across the ecosystem.