Assets other than bitcoin can have very different issuance, governance and utility. Market capitalization uses a supply estimate times price; fully diluted valuation uses a broader supply assumption. Neither number guarantees that all holders could sell at the displayed price.
Read vesting schedules, administrator powers and concentration. A token can be technically functional while having unfavorable economics for holders. Supply and market-cap definitions differ between data providers, so compare like with like.
Worked example
If only 10% of an eventual token supply circulates, future unlocks may matter to holders. They do not mechanically determine a price, but ignoring them omits a real variable.
Check your understanding
Does market capitalization equal money invested into a token?
Show explanation
No. It is a calculation using an estimated supply and a marginal market price.
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