What is Market Capitalization?
Market capitalization is the total market value of a cryptocurrency, calculated as circulating supply multiplied by current price. It is a rough proxy for relative size but ignores fully diluted supply, liquidity depth and lock-ups.
Why Market Capitalization matters
Understanding Market Capitalization is part of building a solid mental model of how Bitcoin, blockchain and Web3 systems actually work. Concepts in the General category sit at the foundation of the broader stack — get them right and the rest is far easier.
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Related terms
- Tokenomics — The economic design of a cryptocurrency.
More general terms
- Altcoin — Any cryptocurrency that is not Bitcoin.
- Cryptocurrency — Digital money secured by cryptography on a blockchain.
- Stablecoin — A cryptocurrency designed to track a stable reference value.
- CEX (Centralized Exchange) — A company-operated crypto trading venue.
- Whitepaper — The technical document describing a protocol's design.
- KYC (Know Your Customer) — Identity verification required by regulated services.
- AML (Anti-Money Laundering) — Regulations preventing illicit financial flows.
- ICO (Initial Coin Offering) — An early-stage token sale to fund a project.
Keep exploring
Continue with the full blockchain glossary — 136 terms in total — or read the developer blog and FAQ for deeper context.