How Is Market Capitalization Calculated Using Token Supply?
Market capitalization (Market Cap) is calculated by multiplying the circulating supply of a token by its current market price. It represents the total dollar value of all tokens currently available for trade and is a key metric for comparing the relative size of cryptocurrencies.
Glossar
Total Dollar Value
Valuation ⎊ Total Dollar Value, within cryptocurrency, options, and derivatives, represents the aggregate monetary worth of a position or portfolio, calculated by multiplying the quantity of the underlying asset by its current market price.
Market Capitalization
Valuation ⎊ This metric represents the total notional value of all circulating units of a cryptocurrency, calculated by multiplying the current spot price by the total supply outstanding, serving as the primary measure of an asset's overall economic scale within the market.
Capitalization
Equity ⎊ In cryptocurrency and derivatives, capitalization transcends the conventional financial definition, representing the aggregate market value of circulating tokens or underlying assets.