> ## Documentation Index
> Fetch the complete documentation index at: https://docs.rwa.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Market cap and total value

> How market capitalization and total asset value differ, and when each metric applies

RWA.xyz tracks two distinct measures of an asset's size: **market capitalization** (market cap) and **total asset value**. They answer different questions, rely on different data sources, and apply to different subsets of tokenized assets.

## Market cap

Market cap is the total value of a token's supply priced at its current secondary market price.

```
Market cap = Total supply × Market price
```

Market cap only exists when a token has a **secondary market** — a venue where tokens trade freely between buyers and sellers at prices set by supply and demand. This includes decentralized exchanges, centralized exchanges, or any on-chain liquidity pool where the token can be bought or sold.

If there is no secondary market for a token, there is no market price, and therefore no market cap.

### Circulating market cap

Circulating market cap is the more commonly referenced figure. It excludes tokens that are locked, held in treasury, or otherwise not available to the market:

```
Circulating market cap = Circulating supply × Market price
```

This is the primary size metric used on the platform for assets that have secondary market trading.

### When market cap does not apply

Many tokenized assets — particularly fund structures, private credit, and institutional products — do not trade on secondary markets. Tokens are issued directly to investors and redeemed back to the issuer. In these cases:

* There is no market price to reference
* Market cap is not calculated
* Total asset value (described below) is the appropriate size metric

## Total asset value

Total asset value represents the value of a token's supply based on its **net asset value (NAV)** rather than its market price.

```
Total asset value = Total supply × NAV per token
```

NAV is issuer-reported and reflects the underlying value of the assets backing the token. See [NAV & yield](/methodology/nav-and-yield) for how NAV is sourced and standardized.

Total asset value applies to all assets that report NAV, regardless of whether a secondary market exists.

### Circulating asset value

Circulating asset value adjusts for non-circulating supply:

```
Circulating asset value = Circulating supply × NAV per token
```

## Price vs. NAV

Price and NAV are independent data points that can diverge.

|                      | Price                               | NAV                                                                       |
| -------------------- | ----------------------------------- | ------------------------------------------------------------------------- |
| **Source**           | Secondary market trading activity   | Issuer-reported valuation                                                 |
| **Reflects**         | What the market is willing to pay   | Underlying asset value per token                                          |
| **Availability**     | Only when a secondary market exists | Any asset where the issuer reports NAV                                    |
| **Update frequency** | Continuous (real-time market data)  | Varies — daily for liquid products, less frequent for illiquid structures |

When both price and NAV are available for the same token, the difference between them tells you whether the token trades at a **premium** (price > NAV) or **discount** (price \< NAV) to its underlying value.

## When to use which metric

| Scenario                                | Metric            | Reason                                                               |
| --------------------------------------- | ----------------- | -------------------------------------------------------------------- |
| Token trades on secondary markets       | Market cap        | Reflects actual market valuation                                     |
| Token has no secondary market           | Total asset value | Only NAV-based valuation is available                                |
| Both price and NAV exist                | Both              | Comparing market cap to total asset value reveals premium/discount   |
| Aggregating across all tokenized assets | Total asset value | Provides a consistent basis since not all assets have a market price |

When the platform aggregates metrics across asset classes, total asset value is the standard measure because it provides coverage across all assets. Market cap is used as a supplementary metric where available.