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  1. Home
  2. /Glossary
  3. /Total Addressable Market (TAM)
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traditional-finance

Total Addressable Market (TAM)

The maximum revenue opportunity available for a product or service if it captured 100% of its market.

Definition

The maximum revenue opportunity available for a product or service if it captured 100% of its market. Investors use TAM to evaluate if a crypto project is targeting a big enough opportunity. A DeFi lending protocol's TAM might be the global lending market, which helps justify high valuations even at small market share.

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Related Terms

Valuation

An estimate of what an asset or company is worth.

Fundamental Analysis

Evaluating an asset based on its underlying value rather than price patterns.

Market Cap (Market Capitalization)

The total value of all coins or shares in circulation, calculated as price times supply.

Accredited Investor

Someone who meets specific income or net worth thresholds set by regulators, qualifying them for investments not available to the general public.

Anti-Money Laundering (AML)

Laws and procedures designed to prevent criminals from disguising illegal funds as legitimate income.

Asset Allocation

How you divide your investments across different asset classes like stocks, bonds, crypto, and cash.

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