Definition
Market capitalization is commonly calculated as the latest token price multiplied by circulating supply.
Simple example
One billion circulating units at an illustrative $0.01 produces a $10 million market cap.
Often confused with
It does not mean $10 million of cash sits behind the token or that all holders can sell near the last price. Liquidity and distribution matter.
Source
- CoinMarketCap Alexandria: Market capitalization — methodology reference.
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