Plain-English definition
Market cap is the price of one token multiplied by how many are circulating. It is the standard shorthand for how large the market values a project right now.
It quietly assumes every circulating token could be sold at the last price, which is never true. In thin liquidity, the realisable value is far below the headline cap.
Why it matters
Market Cap matters because crypto markets can look precise while still being shallow, crowded, or poorly sourced. A useful read is not just the number. It is the number, the size behind it, the context around it, and the part it cannot explain.
Simple example
A simple Market Cap example is a reader comparing two venues with the same headline price but different depth. The deeper venue can absorb more capital before the trade, peg, or yield reading starts to move against the user.
How Bathymark uses this term
Bathymark uses Market Cap to translate open market data into live liquidity readings. When the term touches a live page, the reading links back to the relevant chain, protocol, stablecoin, DEX, perps, or Signal so the source remains checkable.
Common mistake
The common mistake is treating Market Cap as a complete signal by itself. Bathymark treats it as one instrument: useful when read beside liquidity, source, size, and what the number cannot prove.