{"id":1000156,"date":"2026-06-17T08:06:41","date_gmt":"2026-06-17T08:06:41","guid":{"rendered":"https:\/\/dev.themarketperiodical.com\/glossary\/market-capitalization\/"},"modified":"2026-06-17T08:06:41","modified_gmt":"2026-06-17T08:06:41","slug":"market-capitalization","status":"publish","type":"glossary","link":"https:\/\/dev.themarketperiodical.com\/th\/glossary\/market-capitalization\/","title":{"rendered":"Market Capitalization"},"content":{"rendered":"<p><strong>Market capitalization<\/strong> is a standard metric borrowed from equity markets and widely applied in cryptocurrency analysis to gauge the relative size of an asset.<\/p>\n<p>The formula is straightforward:<\/p>\n<ul>\n<li><strong>Market Cap = Current Price \u00d7 Circulating Supply<\/strong><\/li>\n<\/ul>\n<p>For example, if a coin trades at $10 and there are 100 million coins in circulation, its market cap is $1 billion.<\/p>\n<p>Analysts commonly segment the crypto market into tiers based on market cap:<\/p>\n<ul>\n<li><strong>Large-cap:<\/strong> Typically defined as assets with market caps above $10 billion. Generally considered more established and liquid, though not necessarily less volatile.<\/li>\n<li><strong>Mid-cap:<\/strong> Roughly $1 billion to $10 billion. Often faster-growing projects with higher risk profiles.<\/li>\n<li><strong>Small-cap:<\/strong> Below $1 billion. Higher potential volatility and liquidity risk; often newer or less proven projects.<\/li>\n<\/ul>\n<p>Market cap has important limitations as a metric:<\/p>\n<ul>\n<li>It reflects <strong>circulating supply<\/strong>, not total or maximum supply. Some projects have large portions of tokens locked, vested, or yet to be issued, which would significantly affect market cap if released.<\/li>\n<li>It can be <strong>inflated by low liquidity<\/strong>. If a token has very few trades, even a small purchase can push the price \u2014 and thus the market cap \u2014 upward without representing broad market consensus.<\/li>\n<li>It says nothing about a project&#8217;s fundamentals, revenue, or utility.<\/li>\n<\/ul>\n<p>Despite its limitations, market cap is the most widely cited size indicator for comparing digital assets and tracking the overall size of the cryptocurrency market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market capitalization is a standard metric borrowed from equity markets and widely applied in cryptocurrency analysis to gauge the relative size of an asset. The formula is straightforward: Market Cap = Current Price \u00d7 Circulating Supply For example, if a coin trades at $10 and there are 100 million coins in circulation, its market cap \u2026<\/p>\n","protected":false},"template":"","meta":[],"class_list":["post-1000156","glossary","type-glossary","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/dev.themarketperiodical.com\/th\/wp-json\/wp\/v2\/glossary\/1000156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev.themarketperiodical.com\/th\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/dev.themarketperiodical.com\/th\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/dev.themarketperiodical.com\/th\/wp-json\/wp\/v2\/media?parent=1000156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}