Definition ∞ Crypto market capital represents the total value of all circulating tokens or coins for 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 significance within the broader cryptocurrency market. It helps investors assess market dominance and potential for growth.
Context ∞ Analyzing crypto market capital is a standard practice for evaluating the overall health and trends of the digital asset sector. Shifts in market capital often reflect investor sentiment, technological advancements, or regulatory developments impacting specific assets. The allocation of capital across different cryptocurrency categories, such as DeFi or NFTs, indicates prevailing investment narratives and sector-specific growth.
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