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Market Cap

Market capitalization (market cap) is a financial term used to describe the total value of a company, market, or sector at a specific point in time. This metric is commonly used to compare and rank the relative size of different entities.

When referring to equities, market cap is used to describe the total value of all outstanding shares of a company. This can be calculated by multiplying the current market price of a single share by the total number of outstanding shares.

In cryptocurrency investing, market cap can refer to either the free float market cap or the fully diluted market cap. Free float market cap is calculated by multiplying the current price of a single token by the total number of tokens in circulation. Fully diluted market cap takes into account the total number of tokens that could potentially be in circulation in the future, including those that have not yet been released.

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