Market cap
Market cap is the price of one coin multiplied by the number of coins in circulation. It shows how big a project is, not how good it is.
How it works
Market cap is used to compare projects by size. The price of one coin tells you nothing on its own: a coin at $0.01 can be worth more in total than a coin at $100 if a million times more of the first exist.
Next to it you often see FDV (fully diluted valuation): the price times the maximum number of coins, including ones not yet released. If FDV is far above the market cap, token unlocks are coming, and the new supply can weigh on the price.
Market cap is not money actually invested in the project. It can be inflated when trading volume is low: a small buy in a thin coin pushes the price and the market cap up, but you cannot sell the same amount at that price.
A token trades at $2 with 50 million coins in circulation. Market cap is 2 × 50 million = $100 million. Max supply is 1 billion coins, so FDV is $2 billion, 20 times the current market cap.
A coin trades at $0.01 with 100 billion coins, a $1 billion market cap. To reach $1, its market cap would have to grow to $100 billion with the same supply.
The most common mistake is calling a coin "cheap" because it costs a fraction of a cent and expecting it to "surely reach a dollar". Look at market cap, FDV, the unlock schedule and real trading volume instead of the price. A big market cap is no guarantee either: it does not protect against a fall or tell you whether anyone needs the project.
Questions and answers
What is crypto market cap in simple terms?
It is the total market value of all coins in circulation: the price of one coin times the number of coins.
What is the difference between market cap and FDV?
Market cap counts the coins already in circulation. FDV counts the maximum supply, including coins not yet released. A big gap points to future unlocks.
Can a low-priced coin grow a lot?
The price alone means nothing; market cap matters. If a huge number of coins exist, multiplying the price needs an enormous market cap, which is much harder than the number on screen suggests.
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Updated: 2026-10-19