Market Cap (Market Capitalization)
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
Market cap is the total value of a cryptocurrency calculated by multiplying the current price by the circulating supply. It's the most common metric for comparing the relative size of crypto projects.
Market capitalization is calculated as: Current Price × Circulating Supply.
If Bitcoin is priced at $60,000 and there are 19.5 million BTC in circulation, Bitcoin's market cap is approximately $1.17 trillion.
Market cap categories in crypto: - Large cap: above $10 billion (BTC, ETH, SOL, BNB) - Mid cap: $1-10 billion (LINK, ATOM, NEAR) - Small cap: $100M-1B (higher risk, higher potential) - Micro cap: below $100M (very high risk)
Market cap is more useful than price for comparing projects. A $1 token with 10 billion supply ($10B market cap) is actually "more expensive" than a $50,000 token with 19 million supply ($950B market cap).
Fully diluted valuation (FDV) includes all tokens that will ever exist, not just those currently circulating. A large gap between market cap and FDV indicates significant future dilution from token unlocks.
Related Terms
Token Unlock
A token unlock is when previously locked tokens from a cryptocurrency project become available for trading, often increasing supply and creating sell pressure that can push prices down.
Volatility
Volatility measures how much an asset's price fluctuates over time. Crypto is significantly more volatile than traditional assets, meaning larger potential gains but also larger potential losses.
Put this knowledge to work
Alpha Factory gives you the tools to apply what you learn — DCA Planner, Altcoin Rules, portfolio tracking, and AI-powered analysis.
Start Free Trial