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COINGSTY WIRE Tuesday, August 11, 2026
BTC $64,222.63 -1.27% ETH $1,883.74 -1.90% Mkt Cap $2.19T -0.49%
Glossary

Market Capitalization

Plain-language definition Crypto glossary
Key takeaways
  • Market cap is a cryptocurrency's total value: its current price multiplied by its circulating supply.
  • It is the standard way to compare the relative size of assets — a coin priced in cents can be "larger" than one priced in hundreds of dollars.
  • Market cap measures size and market perception, not the amount of money that has been invested in a project.
Definition

Market capitalization, or “market cap,” is a coin’s circulating supply multiplied by its current price. It is a simple way to size a cryptocurrency relative to others, similar to how the term is used for public companies, though crypto’s circulating-supply figures can be harder to verify than a company’s share count.

Why it matters

Market cap is often used as a rough proxy for how established or significant a project is, but it can be misleading on its own. A coin with a large stated supply and a low price can show a high market cap even with thin trading volume, so market cap should be read alongside liquidity and trading activity rather than in isolation.

Example

Rankings by market cap change constantly as prices move. You can see live, ranked market cap data for thousands of coins on our markets page.

This is educational information, not financial advice. Coingsty does not recommend buying or selling any asset.

Formula
Market Cap = Price × Circulating Supply

Price is the current market price; circulating supply is the number of coins publicly available and trading.

BTC today: $64.24K × 20.04M ≈ $1.29T.

Compare
Market cap vs fully diluted valuation
MetricBasisReflects
Market capPrice times circulating supplyCurrent market value
FDVPrice times maximum supplyValue if fully diluted
FAQ
Frequently asked questions
How is market cap calculated?
Multiply the current price by the circulating supply. For example, a coin trading at $2 with 100 million coins in circulation has a market cap of $200 million.
Does a higher market cap mean a better investment?
Not on its own. A larger market cap generally indicates a more established, less volatile asset, while smaller caps carry more growth potential and more risk. Market cap is one input, not a verdict.
What is the difference between market cap and fully diluted valuation?
Market cap uses circulating supply and reflects current value. Fully diluted valuation (FDV) uses maximum supply, showing what the project would be worth if every coin that can ever exist were already in circulation.
Related terms

Other glossary terms connected to this one.

Keep learning

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