Market Value

Definition ∞ Market value represents the current worth of an asset as determined by supply and demand in the open marketplace. For digital assets, this is typically calculated by multiplying the current price of a single unit by the total number of units in circulation. It serves as a primary metric for assessing the overall size and valuation of a cryptocurrency or token.
Context ∞ Market value is a central figure in virtually all cryptocurrency news, serving as the basis for price charts, market capitalization rankings, and investment analyses. Discussions frequently revolve around the factors driving changes in market value, including technological developments, regulatory news, macroeconomic trends, and investor sentiment. Understanding the fluctuations in market value is fundamental to comprehending the performance and perceived worth of digital assets.