Glossary
Market Capitalisation
Price multiplied by total supply. The standard size measure for ranking tokens by value.
Market cap is the price of a token multiplied by the number of tokens in circulation. It gives one figure for comparing tokens of very different sizes.
Circulating supply is what matters, and projects release tokens over time. A large unlock scheduled for next month can add supply faster than any plausible demand growth, which pushes the cap down even with a flat price.
Fully diluted valuation multiplies price by total supply instead. The gap between the two is the part of the token that does not exist yet, and it is a claim on future price rather than current value.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.