What is Market Cap?
The total value of all a company's shares or a token's supply — price times quantity.
Market capitalization is price multiplied by total supply. A token worth $0.001 with 1 billion in supply has a $1,000,000 market cap. It's the honest way to compare sizes, because a low per-coin price means nothing on its own.
This is why 'but it's only $0.0001 per coin, imagine if it hits $1!' is usually nonsense — for that to happen, the market cap would have to exceed the GDP of several countries.
Always judge a token by market cap, not sticker price. Same goes for stocks.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.