Definition ∞ Token market capitalization represents the total value of all circulating units of a specific cryptocurrency or digital token. It is calculated by multiplying the current price of a single token by its total circulating supply. This metric is a primary indicator of an asset’s size and relative dominance within the digital asset market. It helps investors assess an asset’s overall market standing and liquidity.
Context ∞ Token market capitalization is a widely reported metric in crypto news, used to rank digital assets and track their performance and growth. Significant changes in market capitalization often correlate with major market events, technological advancements, or regulatory developments. While useful, it is important to consider other factors beyond market capitalization when evaluating the long-term viability and utility of a digital asset.
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