In plain English
What Crypto market capitalization means
For one asset, market cap is usually price times the number of coins or tokens currently in circulation. For the whole market, the same idea is applied across many assets and then summed. The result is a quick size estimate, not a measure of cash on hand or liquidation value.
Why it matters
Market cap is a common way to compare the relative size of crypto assets. It can help separate large, established networks from smaller ones, but it can also be misleading if supply is thin, concentrated, or partly locked up.
Example
If a token trades at $2 and 100 million tokens are circulating, its market cap is $200 million. That does not mean all holders could sell for $200 million at once, because trading depth and price impact would matter.
Quick answers
Common questions
Is market cap the same as fully diluted value?+
No. Fully diluted value usually prices the asset as if the maximum possible supply were already circulating.
Can market cap be used to judge safety?+
Not by itself. It says little about custody, reserves, governance, or whether the asset will hold its value.
Sources