Market Capitalization

A standard for measuring the total value of stocks or assets with reference to how many are available or in circulation.

Market capitalization (market cap) is a standard metric in corporate finance used to describe the value of a company, stock, or asset. This metric is defined as the total value obtainable from adding up all available units of the stock (in the form of shares) and multiplying this total by the price of each share. In crypto space, market cap refers to the overall value of a cryptocurrency which is determined by adding up available supply and multiplying this total by the price of the coin.

Market cap is a very useful financial instrument used to ascertain the value of a company or crypto. Because Bitcoin constantly has a higher market cap compared to others, it is considered to be the most valuable cryptocurrency in the world.