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  "id": "stablecoin-market-cap",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/stablecoin-market-cap/",
  "collection": "stablecoins",
  "title": "Stablecoin market cap: supply times price, not a reserve audit",
  "description": "Calculate a stablecoin market-cap measure and understand why it differs from reserves, transaction volume, circulating supply and immediately available redemption liquidity.",
  "aliases": [],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T18:15:23.891Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "The stablecoin market-cap measure used here multiplies a defined circulating supply by an observed market price. It is a valuation calculation, not a reserve audit or a measure of immediately redeemable cash. Results depend on supply scope, pricing time and how bridged or issuer-held tokens are treated.",
    "claimId": "stablecoin-market-cap-quick-answer",
    "sourceIds": [
      "erc20",
      "tether-transparency",
      "circle-transparency"
    ]
  },
  "keyFacts": [
    {
      "label": "Formula",
      "value": "The measure defined here is circulating units × observed price per unit.",
      "sourceIds": [
        "erc20",
        "tether-transparency"
      ],
      "id": "formula",
      "claimId": "stablecoin-market-cap-fact-formula"
    },
    {
      "label": "Supply scope",
      "value": "A contract’s totalSupply is not automatically a provider’s circulating-supply definition.",
      "sourceIds": [
        "erc20",
        "tether-transparency"
      ],
      "id": "supply-scope",
      "claimId": "stablecoin-market-cap-fact-supply-scope"
    },
    {
      "label": "Reserves",
      "value": "Reserve composition and assurance require separate issuer evidence.",
      "sourceIds": [
        "circle-transparency"
      ],
      "id": "reserves",
      "claimId": "stablecoin-market-cap-fact-reserves"
    }
  ],
  "prerequisites": [
    "stablecoin-peg-vs-market-price"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "Separate units from dollars",
      "sourceIds": [
        "erc20"
      ],
      "paragraphs": [
        "For an illustrative supply of 1,000,000 tokens trading at $0.98, this market-cap measure is $980,000. The token count remains 1,000,000. A target peg of $1 does not make the observed price $1 by definition.",
        "This is a worked calculation with invented inputs, not a current supply or price observation."
      ]
    },
    {
      "id": "scope",
      "heading": "Avoid counting the same economic claim twice",
      "sourceIds": [
        "circle-cctp",
        "tether-transparency"
      ],
      "paragraphs": [
        "Multi-chain issuance, burns and bridged representations need a consistent scope. Summing a backing token and a wrapper that represents a claim on the same token can double-count economic exposure.",
        "Record whether the figure includes issuer inventory, bridge-held balances or only a provider’s defined circulating units. Publish the definition alongside the value."
      ]
    },
    {
      "id": "meaning",
      "heading": "A large total does not establish liquidity or safety",
      "sourceIds": [
        "circle-transparency",
        "circle-terms"
      ],
      "paragraphs": [
        "Market capitalization does not reveal how much can be sold at the quoted price or redeemed by a particular holder. Those questions involve order-book or pool depth, issuer eligibility and reserve operations.",
        "Compare figures only when their observation times and supply definitions are compatible. A fresh market price multiplied by an old supply snapshot mixes dates."
      ]
    }
  ],
  "faq": [
    {
      "question": "Is stablecoin market cap the same as money in its bank accounts?",
      "answer": "No. It is a supply-and-price calculation. Issuer reserves may include several asset categories and require separate dated disclosures and assurance.",
      "sourceIds": [
        "circle-transparency",
        "tether-transparency"
      ]
    }
  ],
  "claims": [
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      "id": "stablecoin-market-cap-quick-answer",
      "articleSlug": "stablecoin-market-cap",
      "statement": "The stablecoin market-cap measure used here multiplies a defined circulating supply by an observed market price. It is a valuation calculation, not a reserve audit or a measure of immediately redeemable cash. Results depend on supply scope, pricing time and how bridged or issuer-held tokens are treated.",
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      "sourceLocators": [
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          "locator": "totalSupply; balanceOf; transfer; decimals; approve; allowance; transferFrom; Transfer"
        },
        {
          "sourceId": "source-657588e9c7056096",
          "locator": "Reports; Tokens in circulation; Reserves"
        },
        {
          "sourceId": "source-0040950f540a1520",
          "locator": "Reserves composition; Monthly assurance and transparency"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
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        "checkedAt": "2026-10-02T18:15:23.891Z",
        "reviewer": "Independent automated verification agent verify_bitcoin_stablecoins_100",
        "notes": [
          "Recast the multiplier as the explicitly defined measure used in this article, avoiding unsupported attribution of a universal provider convention. Recomputed one million × $0.98 = $980,000.",
          "ERC-20 totalSupply, issuer circulation disclosures and separate reserve evidence support scope distinctions. Wrapper double counting and mixed observation dates are analytical caveats, not claimed live observations."
        ]
      }
    },
    {
      "id": "stablecoin-market-cap-fact-formula",
      "articleSlug": "stablecoin-market-cap",
      "statement": "Formula: The measure defined here is circulating units × observed price per unit.",
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      ],
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          "locator": "totalSupply; balanceOf; transfer; decimals; approve; allowance; transferFrom; Transfer"
        },
        {
          "sourceId": "source-657588e9c7056096",
          "locator": "Reports; Tokens in circulation; Reserves"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
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        "checkedAt": "2026-10-02T18:15:23.891Z",
        "reviewer": "Independent automated verification agent verify_bitcoin_stablecoins_100",
        "notes": [
          "Recast the multiplier as the explicitly defined measure used in this article, avoiding unsupported attribution of a universal provider convention. Recomputed one million × $0.98 = $980,000.",
          "ERC-20 totalSupply, issuer circulation disclosures and separate reserve evidence support scope distinctions. Wrapper double counting and mixed observation dates are analytical caveats, not claimed live observations."
        ]
      }
    },
    {
      "id": "stablecoin-market-cap-fact-supply-scope",
      "articleSlug": "stablecoin-market-cap",
      "statement": "Supply scope: A contract’s totalSupply is not automatically a provider’s circulating-supply definition.",
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      "sourceLocators": [
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          "locator": "totalSupply; balanceOf; transfer; decimals; approve; allowance; transferFrom; Transfer"
        },
        {
          "sourceId": "source-657588e9c7056096",
          "locator": "Reports; Tokens in circulation; Reserves"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
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        "checkedAt": "2026-10-02T18:15:23.891Z",
        "reviewer": "Independent automated verification agent verify_bitcoin_stablecoins_100",
        "notes": [
          "Recast the multiplier as the explicitly defined measure used in this article, avoiding unsupported attribution of a universal provider convention. Recomputed one million × $0.98 = $980,000.",
          "ERC-20 totalSupply, issuer circulation disclosures and separate reserve evidence support scope distinctions. Wrapper double counting and mixed observation dates are analytical caveats, not claimed live observations."
        ]
      }
    },
    {
      "id": "stablecoin-market-cap-fact-reserves",
      "articleSlug": "stablecoin-market-cap",
      "statement": "Reserves: Reserve composition and assurance require separate issuer evidence.",
      "sourceIds": [
        "source-0040950f540a1520"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-0040950f540a1520",
          "locator": "Reserves composition; Monthly assurance and transparency"
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      ],
      "scope": {
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        "dataAsOf": "2026-10-02",
        "blockHeight": null
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      "evidenceStatus": "documented",
      "verification": {
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        "notes": [
          "Recast the multiplier as the explicitly defined measure used in this article, avoiding unsupported attribution of a universal provider convention. Recomputed one million × $0.98 = $980,000.",
          "ERC-20 totalSupply, issuer circulation disclosures and separate reserve evidence support scope distinctions. Wrapper double counting and mixed observation dates are analytical caveats, not claimed live observations."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "erc20",
      "label": "ERC-20 Token Standard",
      "publisher": "Ethereum Improvement Proposals",
      "url": "https://eips.ethereum.org/EIPS/eip-20",
      "locator": "totalSupply; balanceOf; transfer; decimals; approve; allowance; transferFrom; Transfer",
      "note": "Token supply, displayed units and balance accounting.",
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    {
      "id": "tether-transparency",
      "label": "Tether Transparency",
      "publisher": "Tether",
      "url": "https://tether.to/en/transparency/",
      "locator": "Reports; Tokens in circulation; Reserves",
      "note": "Issuer supply and reserve disclosures are distinct from market capitalization.",
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    {
      "id": "circle-transparency",
      "label": "Transparency and Stability",
      "publisher": "Circle",
      "url": "https://www.circle.com/transparency",
      "locator": "Reserves composition; Monthly assurance and transparency",
      "note": "Issuer-disclosed backing, separate reserve funds and assurance report scope.",
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    {
      "id": "circle-cctp",
      "label": "CCTP overview",
      "publisher": "Circle",
      "url": "https://developers.circle.com/cctp",
      "locator": "How CCTP works; Burn and mint",
      "note": "Native USDC transfer uses source-chain burning, Circle attestation and destination minting.",
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      "id": "circle-terms",
      "label": "USDC Terms",
      "publisher": "Circle",
      "url": "https://www.circle.com/legal/usdc-terms",
      "locator": "Sections 1–4, 8, 13, 15–17",
      "note": "Non-EEA USDC holder terms, eligibility, redemption and restrictions; not an unconditional promise to every holder.",
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  "related": {
    "articles": [
      "stablecoin-reserve-reports",
      "stablecoin-redemption-arbitrage",
      "stablecoin-reserve-maturity"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and independent automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “Stablecoin market cap: supply times price, not a reserve audit.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/stablecoin-market-cap/"
}