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TOKENS & ASSETS

Market Cap (Market Capitalization)

Definition

Market capitalization is the total value of a cryptocurrency, calculated by multiplying the current price by the circulating supply. It's used to measure and compare the size of different projects.

Example

💡 Example

If a token trades at $10 with 1 million tokens in circulation, its market cap is $10 million.

Risks to Consider

⚠️ Risks
  • Manipulation with low supply
  • Dilution from new tokens
  • Market volatility

Related Terms