Market Cap
Market Capitalization. The total value of a cryptocurrency calculated by multiplying its current price by the total circulating supply.
Why It Matters
Market cap measures the total value of a cryptocurrency and helps investors gauge its size and significance in the market. It’s a useful metric for comparing different cryptocurrencies and understanding their relative importance.
Example
For instance, if Bitcoin has a market cap of $1 trillion and Ethereum is at $500 billion, Bitcoin is significantly larger, suggesting it may be more stable and established than Ethereum, although both have their unique potential.
Beginner Context
For beginners, understanding market cap is key to evaluating cryptocurrencies. It provides a snapshot of a coin's position within the overall market, helping inform investment choices.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
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Circulating Supply
The number of coins or tokens of a cryptocurrency that are currently available and circulating in the market.
FDV
Fully Diluted Valuation. The theoretical market capitalization of a cryptocurrency if all tokens in its maximum supply were in circulation at the current price.
Bitcoin Dominance
A metric that measures Bitcoin's market capitalization as a percentage of the total cryptocurrency market cap. When Bitcoin dominance rises, it often signals capital flowing from altcoins into Bitcoin, and vice versa.
Market Order
An order to buy or sell a cryptocurrency immediately at the best available current price.
Liquidity
The ease with which an asset can be bought or sold without significantly affecting its price. Higher liquidity means tighter spreads and more efficient trading.