Market cap is an estimate of a token or coin's value based on price multiplied by circulating supply.
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Short definition
Market Cap is market cap is an estimate of a token or coin's value based on price multiplied by circulating supply.
Simple explanation
Market cap is commonly used to compare asset size, but it depends on the accuracy of price and supply data.
Why it matters
Market cap helps readers understand relative size, but it should not be treated as a complete measure of quality or risk.
Example context
If a token trades at $1 and has 10 million circulating tokens, its market cap is $10 million.