Plain English
Market cap is the price of one token multiplied by the number of tokens in circulation. A coin at $50 with 20 million circulating has a $1 billion market cap. It is the standard way to compare relative size of crypto assets.
How it actually works
Crypto market cap behaves differently than stocks because circulating supply changes — through emissions, unlocks, burns, and staking. The published number on aggregators like CoinGecko reflects what is freely tradable, not the total ever-to-exist. Fully diluted valuation (FDV) uses max supply instead and is usually higher.
What it means for you
Two practical points: (1) Beware low-float, high-FDV tokens — the market cap looks small and “10x-able” but the dilution incoming makes it harder than it appears. (2) Compare market caps to peers, not absolute price. A $5 coin can be more expensive than a $50 coin if the $5 coin has 10x the supply.
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Educational content only. Not investment, tax, or legal advice.