What factors contribute to the calculation of market cap and fully diluted market cap for digital assets?

1 answers

• Jan 14, 2022 · 3 years ago
  Calculating the market cap and fully diluted market cap for digital assets is a complex process that involves multiple factors. The price of the asset is a significant factor, as it directly impacts the market cap. The market cap is calculated by multiplying the price of the asset by the total supply of the asset in circulation. Additionally, the circulating supply of the asset is taken into consideration, as it represents the assets that are actively being traded. The fully diluted market cap goes a step further and includes the maximum supply of the asset, including any potential future supply. This provides a more comprehensive view of the asset's potential value. It's important to note that the fully diluted market cap is often higher than the market cap, as it accounts for the additional supply that may enter the market in the future.
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