TL;DR
Market cap is the total value of a token’s circulating supply, calculated by multiplying the current price by the number of tokens in circulation.
Market cap = current price × circulating supply. If a token trades at $0.001 and has 1 billion tokens in circulation, its market cap is $1 million. For Pump.fun tokens on bonding curves, market cap is derived from the bonding curve formula based on the SOL deposited. After graduation, market cap is based on the DEX trading price multiplied by total supply.
Circulating market cap only counts tokens currently available. Fully Diluted Valuation (FDV) multiplies price by total/max supply, including locked, vesting, or unreleased tokens. A token with $10M market cap but $100M FDV means 90% of supply hasn’t entered circulation yet — potential future sell pressure. For memecoins with all supply circulating from launch, market cap and FDV are usually identical.
Market cap gives a sense of a token’s relative size. A $5K market cap memecoin can 100x more easily than a $500M token. Deployer Hunter tracks market cap at alert time and peak market cap to calculate multipliers — showing how much a token grew from when it was first flagged. Comparing similar tokens by market cap helps gauge whether something is overvalued or undervalued relative to peers.