The market capitalization of an asset represents the total network value of that asset.
The market capitalization (market cap) of an asset represents the total network value of that asset, as defined by the combined value of all the units of that asset in existence. It is calculated by a simple multiplication of the total circulating supply by the last traded price.
Market cap is often used describe the size of a crypto asset, especially in comparison to other assets and markets. Market cap is important as it is a proxy measurement for relative network size and a basic determinant of various characteristics that investors are interested in such as adoption, market size and risk.
Market cap is measured by multiplying the price of an asset by its circulating supply.
Last modified 10mo ago