Definition ∞ Market Cap Growth refers to an increase in the total value of all circulating units of a cryptocurrency, calculated by multiplying the current price per unit by the total circulating supply. This growth indicates an expansion of the asset’s overall market valuation. It is a fundamental metric used to assess the size and health of a digital asset or the entire cryptocurrency market. Sustained market cap growth often correlates with increased adoption and investor interest.
Context ∞ News articles frequently report on market cap growth to highlight the performance of individual cryptocurrencies or the broader digital asset sector. A significant increase can signal a bullish market trend, attracting further investment and media attention. This metric provides a straightforward way to compare the relative size and economic significance of different digital assets. Understanding market cap growth is essential for gauging the overall expansion and investor sentiment within the crypto economy.