What is market capitalisation?
Market capitalisation (market cap) is the total value of all coins currently in circulation:
💡 Market Cap = Current Price × Circulating Supply
Example: If a coin is priced at €10 and there are 1,000,000 coins in circulation, its market cap is €10,000,000.
A higher market cap generally indicates a more established project, though it is not a guarantee of quality or future performance.
Market cap categories
- Large cap — Bitcoin, Ethereum, and a small number of other established coins. Generally less volatile, though still highly volatile by traditional standards.
- Mid cap — Established projects with a track record but smaller market presence. Higher risk-reward balance.
- Small cap — Newer or less established projects. Highest potential returns, but also highest risk of total loss. Many disappear entirely.
Bitcoin dominance
Bitcoin's share of the total crypto market cap — "Bitcoin dominance" — fluctuates over time, typically ranging between 40% and 60%. When dominance rises, capital is flowing into Bitcoin at the expense of altcoins. When it falls, altcoins are often outperforming. This metric is tracked live on CoinMarketCap and CoinGecko.
Tools for tracking valuation
CoinGecko
One of the most comprehensive free crypto data platforms. Tracks price, market cap, trading volume, and developer activity across thousands of projects.
Visit CoinGecko →CoinMarketCap
The other major go-to for price and market cap data. Maintains rankings of top exchanges by volume and links to project whitepapers and official websites.
Visit CoinMarketCap →Messari
A research-focused platform providing deeper fundamental analysis. Some content is free; advanced reports require a subscription.
Visit Messari →WorldCoinIndex
A solid alternative to CoinGecko and CoinMarketCap with a clean interface. Good to use as a cross-reference when checking valuations.
Visit WorldCoinIndex →What market cap doesn't tell you
Market cap is useful but has limitations. It doesn't reflect liquidity — a coin can have a large market cap but very thin trading volume, making it hard to sell without crashing the price. Always use market cap alongside your own research, not as a substitute for it.