The market cap of crypto, short for cryptocurrency market capitalisation, is a metric used to measure the total value of a cryptocurrency in circulation. It is calculated by multiplying the current price of a single coin or token by the total number of coins in circulation. For example, if a cryptocurrency has 10 million coins in supply and each coin is worth $5, its market cap would be $50 million.

Market cap is one of the most common ways to rank cryptocurrencies and assess their size and relative importance in the market. Large-cap cryptocurrencies, like Bitcoin and Ethereum, are generally considered more stable and less risky, though still volatile compared to traditional assets. Mid-cap and small-cap cryptocurrencies often carry higher growth potential but also greater risks due to lower liquidity and adoption.

Overall crypto market capitalisation, which sums up the market cap of all cryptocurrencies, gives an idea of the sector’s total value and investor sentiment. It helps analysts track trends, identify shifts in dominance between coins, and understand the overall market health. While market cap is useful, it does not reflect actual cash invested, since prices can move quickly and supply varies. Investors should combine market cap analysis with other factors for better decision-making.