Crypto Market Cap

Definition ∞ Crypto market cap, or cryptocurrency market capitalization, represents the total value of a digital asset in circulation. It is calculated by multiplying the current circulating supply of a cryptocurrency by its current market price. This metric serves as a primary indicator of a digital asset’s relative size and economic significance within the broader cryptocurrency landscape. A higher market capitalization generally suggests greater investor confidence and market penetration.
Context ∞ The crypto market cap is a fundamental metric frequently cited in news reports to contextualize the valuation of digital assets and the overall health of the cryptocurrency sector. Fluctuations in market cap are closely monitored by investors and analysts to gauge market sentiment and identify potential trends. Discussions often center on shifts in market dominance among top cryptocurrencies and the emergence of new assets with substantial valuations.