MMC is a valuation metric that calculates market capitalization based on a token's Total Supply (also known as minted supply).
The many shades of Market Cap
In crypto, 'Market Cap' is a polysemous term in that it is often used to describe distinct valuation metrics that share the same label.
When people say ‘market cap’, what are they actually referring to?
To disambiguate, here are the myriad ways to calculate market cap, ranked in descending order of valuation.
- Fully Diluted Valuation (FDV): Maximum Supply x Price
- Minted Market Cap (MMC): Total Supply (net of burns) x Price
- Unlocked Market Cap (UMC): Unlocked Supply x Price
- Circulating Market Cap (CMC): Public float x Price
On CoinMarketCap, coins are ranked by their Circulating Market Cap (CMC). Derived from public float, the aspiration is to -- in keeping with the ethos of decentralisation -- reflect what public investors consider the company to be worth and mitigate rank manipulation.
While circulating market capitalization and Fully Diluted Value (FDV) have long served as industry standards for crypto, recent tokenomic trends have necessitated additional approaches to valuation. This goal is to avail more metrics to augment existing ones, so as to unlock additional insights for investors. MMC is a new set of lens that TradFi-minded investors can use to analyze cryptoassets.
What is Minted Market Cap (MMC)?
MMC is a valuation metric that calculates market capitalization based on a token's Total Supply (also known as minted supply). It represents the total value of all tokens that have actually been created or "minted" into existence.
Formula: MMC = Token Price × Total Supply (net of burns)
Why Does MMC Matter (the TradFi parallel)?
MMC is a valuation metric for traditional finance (TradFi)-minded investors who are looking for something analogous to issued shares.
This parallel helps bridge the gap between traditional and digital asset valuation methods.
- Authorized Shares ≈ Maximum Supply (what could exist in the future)
- Issued Shares ≈ Total Supply (what exists now)
- Public Float ≈ Circulating Supply (what's actively tradeable in public hands)
Essentially, MMC anchors valuation to what has been minted today. In contrast, FDV anchors valuation based on what could be minted in the future.
Additionally, MMC is more useful than FDV when analyzing projects with complex tokenomics. Many projects implement increasingly intricate mechanisms, including variable vesting schedules that release tokens based on performance milestones, algorithmic burning that permanently removes tokens from circulation, and dynamic inflation rates that adjust supply based on network conditions.
To recap:
- MMC (Minted Market Cap): It shows the project’s valuation based on current issuance (net of burns).
- FDV (Fully Diluted Valuation): Assumes all possible tokens will exist. It shows the project’s maximum theoretical future valuation, including tokens not yet minted.
Summary
The introduction of Minted Market Cap (MMC) as a valuation metric reflects our ongoing dedication to improving market transparency and adapting to evolving market trends. At CoinMarketCap, we're committed to providing the most comprehensive and accurate data to help investors make informed decisions.
While MMC introduces a fresh lens for valuation, it is just one of many tools in an investor’s arsenal. For a holistic analysis, it should be considered alongside circulating market cap, fully diluted valuation (FDV), unlock schedules, and liquidity.
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