Market Capitalization

Market capitalization, often called "market cap," represents the total value of an asset that is available on the market. It’s calculated by multiplying the current price of a single unit by the total number of units in circulation. For example, if a company has 1 million shares and each share trades at $10, the company’s market cap is $10 million.

Market cap is a key metric for evaluating the size and value of publicly traded companies. It's also widely used in the cryptocurrency world—for instance, Bitcoin’s market cap is found by multiplying the current price of one bitcoin by the total number of bitcoins in existence. This figure gives investors a quick sense of an asset’s overall scale compared to others.