Explained: What Is Crypto Market Cap (Capitalization)?

Market capitalization in crypto is the monetary value of a token or coin multiplied by its circulating supply (number of coins/tokens that have been mined or minted). It highlights the stability and value of an asset in the long term. 

While crypto is undeniably volatile, cryptocurrencies with a large market cap usually indicate that investments are more stable, as smaller cap cryptos are more susceptible to overall market sentiment. 

Let’s learn more about market capitalization and why it matters in your crypto journey.