The term “market cap” is an abbreviation of “market capitalization” and refers to the total value of any given asset.
We calculate the total cryptocurrency market cap by adding together the market caps of all the coins listed on CoinMarketCap.
To calculate the market cap of any given coin, we multiply the value of one unit with its circulating supply. Let’s use Bitcoin as an example. At the moment, one BTC is worth around $6,500 and there are (roughly) 17.3 million BTC in circulation. This corresponds to a market capitalization of $112.45 billion.
BTC Market Cap = BTC Price × BTC Circulating Supply = $6,500 × 17.3M = $112.45B
The market capitalization metric for single coins is useful for comparing different coins to each other, while the total cryptocurrency market capitalization allows us to track if the cryptocurrency market as a whole is growing or declining.
CoinMarkarketCap allows you to see the market capitalization of the total crypto market in the Market Overview page.