How market capitalization is calculated
Comparing crypto projects by unit price alone can be misleading. Market capitalization multiplies price by circulating supply and gives a starting view of the market’s total valuation.
Compare circulating-supply definitions
Total supply, maximum supply, and future releases affect the meaning of today’s price. Unlock schedules and holdings by teams, foundations, and investors help explain future supply.
Unlocks and dilution
A low market cap is not automatically undervalued, and supply growth affects price differently depending on demand and utility. Review price, supply, and use together.
A hypothetical token comparison
At a token price of $2 and a circulating supply of 100 million, simple market capitalization is $200 million. If total supply is one billion, fully diluted value at the same assumed price is $2 billion. The gap prompts a review of future issuance and unlocks; it is not a forecast of the price at which all tokens could trade.
Cross-check data sources
Read how the project defines total and maximum supply, check minting authority in the token contract, and compare provider definitions for treasury, team, and bridged balances. An unlock calendar should identify recipients, vesting terms, and whether tokens can actually be transferred. An explorer balance alone may not establish free float.
Limits of the metric
Market capitalization is a snapshot based on a marginal price multiplied by a supply estimate; it does not mean that amount of cash entered the market. Thin liquidity can make prices move sharply on small trades. FDV does not determine future price or selling pressure, so review liquidity, allocation, and real usage separately.