What market cap means

Market capitalization represents the total value of a cryptocurrency, calculated as price multiplied by circulating supply. Globally, the crypto market is valued at $3.04T, a top-level measure of ecosystem size and investor confidence.

Why investors use market cap

Market cap helps classify assets into large, mid, and small caps to assess risk and growth potential. Larger caps like Bitcoin tend to show lower volatility, while smaller caps can offer higher upside with greater drawdowns.

Practical applications

Use market cap to compare asset size, screen for opportunities, and build diversified portfolios that balance stability and growth. It also contextualizes price moves relative to total value at stake.