Market cap is short for market capitalization and is the total value held in a cryptocurrency. It is calculated by multiplying the total supply of coins by the current price of an individual unit.
The trading community uses the market cap to determine the strength of a given cryptocurrency in relation to all other cryptocurrencies. It is also easy to calculate and can help traders determine which cryptocurrencies might be best to hold in their portfolio.
Nearly half the market cap of all existing cryptocurrencies is in Bitcoin – as of late March Bitcoin has a market cap of $117.8 billion, while the entire cryptocurrency market cap (for those coins tracked by coinmarketcap.com) is $262.7 billion.