Market capitalization (market cap) is the total value of all circulating tokens, calculated by multiplying the current token price by the circulating supply. It is the most widely used metric for ranking and comparing cryptocurrencies by size.
Market cap provides a snapshot of a token's current valuation but does not account for tokens still locked in vesting. This is why comparing market cap to fully diluted valuation (FDV) is important for understanding the full picture of potential dilution.
Changes in market cap can result from price movements, supply changes (unlocks, burns), or both. A rising market cap driven by increasing circulating supply despite a falling price indicates that new supply is entering the market faster than demand can absorb it.