Market capitalization (market cap) is the total value of a cryptocurrency, calculated by multiplying the current price per token by the circulating supply. It's one of the most commonly used metrics for ranking and comparing cryptocurrencies.
Formula
Market Cap = Current Price × Circulating Supply
Categories
Large Cap (>$10B): Established projects like Bitcoin, Ethereum — lower risk, lower potential returns.
Mid Cap ($1B-$10B): Growing projects with solid fundamentals — moderate risk/reward.
Small Cap ($100M-$1B): Emerging projects — higher risk, higher potential returns.
Micro Cap (<$100M): Very early stage projects — highest risk and volatility.
Fully Diluted Valuation (FDV)
FDV considers the maximum token supply instead of circulating supply: FDV = Current Price × Maximum Supply. This metric is important for understanding a token's potential future inflation and how much selling pressure may come from token unlocks.