Glossary/Market Cap

Market Cap

🟢 Beginner
Definition

The total value of a cryptocurrency, calculated by multiplying its current price by the total number of coins in circulation.

💡 Think of it like...

Think of it like the total value of a company's stock — it tells you how big or small a crypto project is relative to others.

🎯 Why it matters to you

Market cap helps you compare the size of different cryptocurrencies and understand whether a coin is a large, established player or a small, risky newcomer.

⚠️ Watch out for...

Watch out for judging a coin only by its price — a coin at $0.01 can have a higher market cap (and be 'bigger') than a coin at $500 if there are far more of them in circulation.

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