How is the market cap of a cryptoasset calculated?
We determine the market cap of a cryptoasset by the following calculation:
Market Cap = current Circulating Supply X existing reference Price
For example, let's take the market capitalization of Bitcoin as an example:
Let (C) be the last known reference price of Bitcoin from CoinMarketCap in USD.
Let (S) be the current circulating supply of Bitcoin.
Let (D) be the derived market capitalization for Bitcoin.
For this example, let (C) = 10,000 USD / 1 BTC and let (S) = 17,000,000 BTC.
D = C * S
D = 10,000 USD / 1 BTC * 17,000,000 BTC = 170,000,000,000 USD
Therefore, the derived market capitalization for Bitcoin is $170,000,000,000 USD.
For more information, see Section 8 Market Capitalization (Cryptoasset) in our methodology page.