Market capitalisation is generally calculated by multiplying a token’s price by its circulating supply. A small trade can change the reference price without an equivalent amount of new cash entering the market.
Circulating vs fully diluted
Fully diluted valuation uses a broader supply measure. Understand the provider’s definitions, particularly when token supply can change or allocation schedules are complex.
Liquidity still matters
A high valuation does not guarantee that a large order can be executed near the quoted price. Slippage and market depth are separate questions.
Use metrics together
Read market cap alongside supply disclosures, turnover, venue coverage, and project fundamentals. Record the source and timestamp of any numerical comparison.
For educational purposes. Views should be assessed against their evidence and publication date.
