What is Market Capitalization?. Market capitalization is price multiplied by circulating supply. It estimates a network’s current market value but says little about fundamentals by itself.
How it works
As price or supply changes, market cap moves. Fully diluted valuation also considers tokens not yet unlocked.
Why it matters
Comparing market caps helps contextualize size across assets but should be paired with adoption and cash‑flow metrics.
Common pitfalls
- Confusing market cap with money invested
- Ignoring unlock schedules that change supply
- Comparing chains with different roles and risks
Quick example
An asset with a small float can show a high price without real depth—market cap plus liquidity tells the fuller story.
See also
- Circulating vs. Total Supply
- Liquidity
- ATH/ATL
TL;DR: What is Market Capitalization? defined in plain English with practical next steps.
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