What is a Market Capitalization?
Quick Definition
Market capitalization, or market cap, is the total value of all tokens in circulation, calculated by multiplying the current price by the circulating supply.
Full Definition
Market cap is one of the most common ways to measure the size and scale of a crypto asset. It allows for direct comparison between different tokens. A token with a $10 billion market cap is, by this measure, ten times larger than a token with a $1 billion market cap.
Market cap is often used to rank cryptocurrencies and assess their relative significance in the market.
Market cap for stablecoins
For stablecoins, market cap takes on a slightly different meaning. Because the price tracks a stable reference value (such as the US dollar), market cap is essentially equal to the total supply in circulation and, in a well-backed stablecoin, also corresponds to the total value of the reserves backing it. This means market cap effectively measures how much real-world capital is being held in the form of that stablecoin.
Steady's market cap
Steady's market cap reflects the total circulating supply of STDY, which is directly tied to the value of reserve assets held to back the tokens. Current supply and market cap data is published in real time on the Transparency Portal.
Related Terms
Reserves
ReadReserves are the total pool of assets held by a stablecoin issuer to back the tokens in circulation.
Supply
ReadSupply refers to the total amount of tokens that have been issued and are in circulation.
Total Value Locked (TVL)
ReadTotal Value Locked (TVL) is a metric that measures the total value of assets held within a specific protocol, platform, or token.
Other Glossary Items
Learn about common and essential terms related to Steady and other stablecoin protocols.
Algorithmic Stablecoin
ReadAn algorithmic stablecoin attempts to maintain its value through automated rules that adjust token supply based on market demand, rather than holding equivalent reserve assets.
AML
ReadAML (Anti-Money Laundering) refers to the laws, regulations, and procedures designed to prevent the use of financial systems for laundering the proceeds of crime.
APY
ReadAPY, or Annual Percentage Yield, is the standardized rate of return an asset generates over a year, including the effect of compounding.
Arbitrum
ReadArbitrum is a Layer 2 blockchain network built on top of Ethereum, designed to offer faster and cheaper transactions while inheriting Ethereum's security and infrastructure.
Asset Backing
ReadAsset backing refers to the real-world or on-chain assets held by the issuer to support the value of every token in circulation.
Asset Locking
ReadAsset locking refers to restricting access to funds for a defined period or condition, during which they cannot be transferred or used.
Asset Segregation
ReadAsset segregation is the practice of keeping client or backing assets separate from the issuer's operational funds, protecting them from the issuer's other obligations.
Audit
ReadAn audit is an independent examination of a protocol's code, reserves, or operations by qualified third parties to verify accuracy and compliance with stated claims.
Backing
ReadBacking refers to the assets or mechanisms that support a stablecoin's value and help it maintain its intended reference value.
Blockchain Network
ReadA blockchain network is the system of connected participants and infrastructure that validates, records, and maintains data on a specific blockchain.
Blockchain
ReadA blockchain is a distributed digital ledger that records transactions across a network of computers in a secure, transparent, and tamper-resistant way.
Bridge
ReadA bridge is a mechanism that enables the transfer of assets or data between different blockchain networks.
Clarity Act
ReadThe Clarity Act is a proposed US legislative framework intended to clarify the regulatory treatment of digital assets, defining when they should be treated as securities versus commodities.
Collateralization / Over-collateralization
ReadCollateralization refers to the ratio between the value of assets held in reserve and the value of tokens issued. Over-collateralization means holding more in reserves than the value of tokens issued.
Composability
ReadComposability refers to the ability of different protocols, contracts, and tokens on a blockchain to interact and combine with each other seamlessly.
LearnMoreAboutSteady
Transparency Portal
reserves, statements, audits, smart contract, and more.
FAQs
Discover the basics about Steady in our frequently asked questions.
Contact Us
questions, feel free to get in touch. We'll be happy to help.
