The basic formula
Market cap is generally calculated by multiplying a reference price by the amount of units counted as circulating supply. Exact methodologies can differ between data providers.
Why price alone can mislead
A coin with a low unit price can still have a large market cap if there are many units. Compare market cap and supply together instead of looking at the token price in isolation.
Circulating versus maximum supply
Circulating supply and maximum supply are different concepts. Future unlocks can change the amount of tokens available and affect how you interpret valuation.
How to use the metric
Use market cap as context alongside liquidity, network usage, tokenomics and risks. It is not a quality score or a forecast of future price.
FAQ
Does a higher market cap mean lower risk?
Not necessarily. It mainly describes market size under a chosen methodology; risk depends on many other factors.
Can market cap rise when supply changes?
Yes. Price and circulating supply can move at the same time, so both should be monitored.
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