Market capitalization ("market cap") is the total market value of a company's outstanding shares of stock, or of a cryptocurrency's circulating tokens. It is calculated by multiplying the current price by the number of outstanding shares or tokens.
Market Cap = Current Price × Outstanding Shares (or Circulating Supply)
Market cap is the standard metric for comparing the size of public companies and cryptocurrencies. It is used to classify stocks (large-cap, mid-cap, small-cap), to weight major indices like the S&P 500, and to rank cryptocurrencies by relative importance.
See also: Market Cap vs Enterprise Value.