Market capitalization helps put a cryptocurrency’s price into perspective. Learn how market cap is calculated, why token supply matters, and how to read it alongside liquidity and fully diluted valuation when exploring crypto projects.

When researching a cryptocurrency, price is often one of the first numbers people notice. But the price of a single coin or token tells only a small part of the story. To understand how a crypto asset is structured, it is also important to look at its token supply.

Thousands of cryptocurrency projects have launched over the past decade. Some have grown into thriving ecosystems with millions of users, while countless others have disappeared after raising funds or generating short-lived hype. For newcomers, distinguishing between legitimate projects and questionable ones can seem overwhelming.