Crypto Market Cap Combines Price With Circulating Supply

Market capitalization estimates the value of a crypto asset’s circulating units at its current price. The calculation combines two inputs — the price of one token and an estimate of how many tokens are circulating — so the result can change when either input changes. The figure describes a valuation based on those inputs. It does not show how much cash investors put into an asset, nor does it establish how much could be raised if holders tried to sell. A quoted price applies to one unit; market capitalization extends that price across the estimated circulating amount.

Source: TokenPost