Crypto Capitalization

Definition ∞ Crypto capitalization, often referred to as market capitalization, represents the total value of all circulating tokens of a particular cryptocurrency. It is calculated by multiplying the current price of a single unit by the total number of units in circulation. This metric serves as a key indicator of a digital asset’s size and relative market significance. It helps in assessing market dominance and investment scale.
Context ∞ News reports frequently cite crypto capitalization figures to convey market sentiment and the overall health of the digital asset economy. The state of crypto capitalization is a central discussion point during market cycles, indicating periods of expansion or contraction. Future developments include its evolving role in financial indices and broader economic analysis.