Price Formula:
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The price of a cryptocurrency token represents its current market value per unit. It is calculated by dividing the total market capitalization by the circulating supply of tokens.
The calculator uses the fundamental price formula:
Where:
Explanation: This formula shows the direct relationship between market capitalization, circulating supply, and individual token price.
Details: Understanding token pricing is essential for investors, traders, and analysts to evaluate cryptocurrency value, make informed investment decisions, and assess market trends.
Tips: Enter market capitalization in USD and circulating supply in number of tokens. Both values must be positive numbers greater than zero for accurate calculation.
Q1: What is market capitalization?
A: Market cap represents the total dollar value of all circulating tokens, calculated by multiplying current price by circulating supply.
Q2: Why is circulating supply important?
A: Circulating supply refers to the number of tokens publicly available and trading in the market, excluding locked or reserved tokens.
Q3: How accurate is this calculation?
A: This provides the theoretical price based on market cap and supply. Actual trading prices may vary due to market dynamics.
Q4: What affects cryptocurrency prices?
A: Prices are influenced by supply and demand, market sentiment, adoption rates, regulatory news, and overall market conditions.
Q5: Should I use this for investment decisions?
A: This calculator provides basic pricing information. Always conduct thorough research and consult financial advisors before making investment decisions.