Market basics · Glossary
Market capitalization
A rough size measure based on price times circulating supply.
Definition and explanation
Market capitalization multiplies an asset's current price by its circulating supply. It is a coarse measure of an asset's size and is not the same as its fully diluted value, which assumes all supply is in circulation. Market cap does not measure value in the way an earnings multiple does for a company.
Example
If a token trades at $2 with 100 million coins in circulation, its market capitalization is $200 million.
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