What is market capitalisation?
The current price of an asset multiplied by its circulating supply — a rough measure of the total value of everything in circulation.
Market cap is the standard way to compare the size of crypto assets, and it is why a coin priced at fractions of a cent can be larger than one priced in thousands of dollars.
Why it matters: it corrects the most common beginner error — treating a low unit price as “cheap”. A coin’s price is meaningless without knowing how many exist. Market cap has its own limitation: it assumes every unit could be sold at the current price, which is false for assets with thin liquidity. Compare assets on our comparison tool.
Related terms
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- Max supplyThe largest number of units of an asset that will ever exist, where the…
- DrawdownThe fall from a portfolio or asset's peak value to its lowest point afterwards,…
- Smart contractA program stored on a blockchain that runs exactly as written when its conditions…
- SlippageThe difference between the price you expected to trade at and the price you…
- Proof of workA consensus mechanism where computers compete to solve a hard arithmetic puzzle, and the…
Crypto assets are volatile and high-risk. Prices shown are indicative and may be delayed. Always do your own research. Coinpric does not provide financial advice.