Market Cap
Circulating supply multiplied by price — what the token is 'worth' at today's price.
Definition
Market cap is the number most people should anchor on, not token price. A $0.000001 token with 1 trillion supply has the same market cap as a $1 token with 1 million supply — $1M either way. Chasing low per-token prices expecting 'dollar parity' is a beginner mistake.
Compare to fully diluted valuation (FDV), which uses total supply. If FDV is 10x market cap, there's a wall of unlocked supply coming and it will pressure the price as it unlocks.
Examples
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$2M cap memecoin with real community — asymmetric bet.
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FDV is $500M, market cap is $50M — that unlock schedule is brutal.
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Explain to him that a $0.0001 token does not 'just need to reach $1.'
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