What a coin's market cap is
A coin's market cap is the number of coins currently circulating in the market (circulating supply) multiplied by the current price. It is the same idea as multiplying a company's shares outstanding by its share price to measure what the whole company is worth. It is a size figure that shows “what it would cost to acquire every coin in circulation at today's price.”
A large market cap means that much money, that many people and that many exchanges are attached to the coin. It is often read as a current-state sign that the coin has survived a long time and built up a certain degree of market trust. A large size, however, does not mean the price is headed up or that the coin is safe.
Even at the same price, more circulating supply means a larger market cap. That is why comparing coins by market cap, not by the price of a single coin, is the fair way to compare their size. A coin priced at a few hundred KRW can have a larger market cap than one priced at tens of millions of KRW.
How circulating supply differs from total supply
A coin has three layers of supply. Circulating supply is the amount actually trading in the market now, total supply is everything issued so far minus coins that have been burned, and max supply is the issuance cap set by the design. Market cap is usually calculated on circulating supply.
The distinction matters. If circulating supply is small but a large amount is still locked and not yet released, supply grows when those coins later reach the market, and the price can be diluted. Today's market cap alone does not show this potential supply.
That is why fully diluted valuation (FDV), calculated on the assumption that the entire total or max supply has been released, is also used. If circulating market cap looks small but FDV is far larger, that can signal a large amount of supply still to be released.
Why Jupick's grade weights size heavily and measures it on a log scale
Coins have no sales, profits or liabilities, so their strength cannot be measured from financial statements. The coin grade therefore treats size as a major proxy for market trust and liquidity and gives market cap the largest weight of its three axes.
The score measures market cap on a log scale. Growing from 1 trillion to 2 trillion carries a different weight than growing from 100 trillion to 200 trillion, and sizes differ by orders of magnitude. A log scale makes the score rise by a constant amount each time market cap grows tenfold. The exact scoring standards for this calculation are published as-is in Jupick's coin grade methodology document.
Weighting size heavily does not mean a large coin always earns a good grade. Even with a high size score, a coin that trades thinly or has moved sharply in recent days loses points on the other two axes, which lowers its overall grade.
Market cap does not mean that much money is in the coin
Market cap is a theoretical figure: the last traded price multiplied by the entire circulating supply. It does not mean that amount of money has actually flowed into the coin and is locked there.
The price is set by a very small number of coins changing hands at that moment, and market cap applies that price equally to the entire circulating supply. Market cap is therefore closer to a size measured on the assumption that “the current price applies to every coin.”
So a market cap of KRW 1 trillion does not mean that disposing of every coin would put KRW 1 trillion in hand. The more coins hit the market at once, the further the price is pushed down, and the amount actually received ends up smaller. Market cap is a reference indicator for comparing size, not the actual cash tied up in a coin or an amount that can be withdrawn at any time.
What to watch when reading market cap
First, a large market cap does not signal that a coin is priced low or that it is safe. Size is only the value the market currently puts on a coin, and it says nothing about whether that value is fair or too high.
Second, when circulating supply is fixed, market cap grows exactly as much as the price rises, and when the price drops, rankings can flip in an instant. Market cap rankings are not a fixed order but a current state that moves every moment.
Jupick provides market cap only as a reference indicator of the current state and gives no trading advice on any coin. This content is for information only and is not investment advice.
Frequently asked questions
- How is a coin's market cap calculated?
- It is the number of coins circulating in the market (circulating supply) multiplied by the current price. Like shares outstanding times share price for a stock, it shows what the whole coin is worth. Even at the same price, more circulating supply means a larger market cap, so coins are compared by market cap, not by the price of one coin.
- How does circulating supply differ from total supply?
- Circulating supply is what trades now, total supply is everything issued minus burned coins, and max supply is the cap set by the design. Market cap is usually based on circulating supply. Because a large locked amount may be released later, fully diluted valuation (FDV), which assumes everything has been released, is looked at as well.
- Why does Jupick's coin grade measure market cap on a log scale?
- With no financial statements to go on, the grade treats size as a proxy for market trust and liquidity and gives market cap the largest weight. Because size differs by orders of magnitude, it is measured on a log scale so the score rises by a constant amount each time market cap grows tenfold.