StakePoint
Solana DeFi Glossary
Definitions of key terms used in Solana DeFi, token locking, LP locking, and staking. Published by the StakePoint team.
Market Cap
The total market value of a token's circulating supply.
Definition
Market capitalisation (market cap) is the total market value of a cryptocurrency's circulating supply. It is calculated by multiplying the current token price by the circulating supply.
Market cap is commonly used to compare the relative size of cryptocurrencies. A higher market cap generally indicates a more established or widely held token, though it does not guarantee quality or security.
Fully diluted valuation (FDV) is a related metric that calculates market cap using the total supply rather than circulating supply — including all locked, vested, and unreleased tokens. FDV shows the potential market cap if all tokens were in circulation.
StakePoint & Market Cap
Token locking on StakePoint affects a project's circulating supply and therefore its market cap calculation. Locked tokens are excluded from circulating supply, which can result in a lower market cap relative to FDV.
Related Pages
Frequently Asked Questions
What is market cap in crypto?
Market cap is the total market value of a token's circulating supply — calculated by multiplying price by circulating supply.
What is the difference between market cap and FDV?
Market cap uses circulating supply. FDV (fully diluted valuation) uses total supply including locked and unreleased tokens.
Related Terms
Circulating Supply
The number of tokens currently available and tradeable in the market.
Tokenomics
The economic design of a token including supply, distribution, and incentive mechanisms.
Token Locking
The process of transferring tokens into a smart contract until a fixed unlock date.
SPL Token
The standard token format on the Solana blockchain.