How to Calculate the Market Cap and Price of A Cryptocurrency? (2024)

FAQs

What is the formula to calculate a price of a cryptocurrency? ›

To calculate the crypto price, divide the total market value by the number of coins in circulation.

The market cap of a cryptocurrency or token is about price, not value, which misleads many investors. But it's more than that. Market cap only reflects the last transaction price multiplied by the circulating supply.

Well, the Market Cap of a cryptocurrency is calculated by multiplying the Circulating Supply with the price of the coin or token(market cap= Circulating Supply * Price). For instance, Bitcoin's circulating supply is 18,745,293 BTC and its current price is $34,976.10.

In crypto, market cap is calculated by multiplying the total number of coins that have been mined by the price of a single coin at any given time.

Unfortunately, not even the most optimistic punters believe that's realistic, and therefore, the only way to reach that price is to reduce supply. It's unlikely that novelties like the metaverse will result in the 99.99998% reduction in supply Shiba Inu would need to mathematically send the price to $1.

This can be done by looking at the cryptocurrency market cap. The cryptocurrency market cap is the total value of all of the coins in the cryptocurrency market. The cryptocurrency market cap is an updated value of the total coins in the market. When a cryptocurrency is going up in price, the market cap will increase.

Cryptocurrency gains value if the demand for it is higher than the supply. When a cryptocurrency is useful, people want to own more of it, driving up the demand. Since people want to use it, they don't want to sell it. This means there is more demand than supply and the value increases.

Cryptocurrencies are a tradable asset, much like stocks, commodities, securities and so on. Their price is determined by how much interest there is on the market in buying them – that's called demand – and how much is available to buy – that's supply. The relationship between the two determines the price.

Factors that affect prices include supply and demand. These are among the major factors. Similar to most assets, increasing demand can push up prices as can lack of supply. Other factors include regulation, political events and the economic climate as well as issues with and the use of each crypto.

Technically speaking, Shiba Inu could reach a penny if enough capital were to start investing in dog-themed cryptocurrencies. But since Shiba Inu would need trillions in capital to reach $0.01, institutions and governments would need to purchase SHIB, which seems highly unlikely.

How high can Shiba Inu go in 2023? ›

According to crypto analysts, if the crypto market rebounds to 2021 performance, Shiba Inu's price can reach $0.0001 in 2022. They also predict that the Shiba Inu price will touch $0.00015 by 2023, $0.0002 by 2025, and $0.01 by 2030, making an all-time hit.

Coin burns could help Shiba Inu. But to bring supply down to even 999 billion tokens, you would have to burn 99% of today's supply. All of this means it doesn't look like Shiba Inu is heading for one cent anytime soon.

Most analysts believe that Shiba Inu could rebound in 2023 alongside the rest of the cryptocurrency market. If this happens, most analysts expect Shiba Inu to trade at an average price of $0.00004 in 2023. In the long term, analysts expect Shiba Inu to hit a high of $0.01 in 2025 if there is another major rally.

Large-cap cryptocurrencies are generally considered to be safe crypto investments. These are companies with a market cap of more than $10 billion. Investing in coins with large market capitalisation is usually a conservative strategy.

Cryptocurrency gains value if the demand for it is higher than the supply. When a cryptocurrency is useful, people want to own more of it, driving up the demand. Since people want to use it, they don't want to sell it. This means there is more demand than supply and the value increases.

If your investment has shot up in value, you should probably sell at least a portion of it. For example, you could sell what you originally invested, and then you're playing with house money going forward. Because of how volatile crypto is, profits can disappear quickly.

Cryptocurrencies like Bitcoin can experience daily (or even hourly) price volatility. As with any kind of investment, volatility may cause uncertainty, fear of missing out, or fear of participating at all. When prices are fluctuating, how do you know when to buy? In an ideal world, it's simple: buy low, sell high.

Cryptos with larger market caps often attract more investors as they're considered more appealing than other cryptocurrencies. That's why market cap is commonly used when ranking cryptocurrencies.

What is the next big cryptocurrency to explode in 2022? ›

RobotEra (TARO) - Top P2E Crypto in Newly Launched Presale

RobotEra launched the presale of native token $TARO in November 2022 and looks set to explode according to market sentiment.

As of June 2022, there are about 2 million bitcoins (BTC) left to be mined, which means that there are nearly 19 million currently in existence.

Crypto prices can be dramatically affected by major crypto events, such as exchanges or coins crashing. They can also sink with higher interest rates, rising inflation and other macroeconomic factors that can affect how confident people feel investing their money in risky alternative assets.