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Market Capitalization Meaning

The total market value of a project’s circulating supply of tokens. It is calculated by multiplying the Current Price by the Circulating Supply (Price×Supply=MarketCap).

It is important to distinguish between "Circulating" Market Cap and Fully Diluted Valuation (FDV). The FDV is the market cap if all tokens (including those locked for founders) were currently in the market.

If a project has a low circulating market cap but a massive FDV, it means a lot of "Supply Inflation" is coming, which could push the price down. While Market Cap is the standard for ranking, it is not a "perfect" metric.

It doesn't tell you how much "Real Money" is actually in the project; it only tells you what the "last trade" was worth multiplied by the supply. In illiquid markets, Market Cap can be easily "manipulated" by a few small trades.

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