Home
Back
Price Calculation Formula:
| From: | To: |
The Crypto Price Calculator estimates the price of a cryptocurrency token based on its market capitalization and circulating supply. This fundamental calculation helps investors understand the relationship between market value and token supply.
The calculator uses the basic price formula:
Where:
Explanation: This formula represents the fundamental relationship between a cryptocurrency's total market value and its circulating supply, determining the price per individual token.
Details: Understanding this calculation is crucial for cryptocurrency investors to evaluate token valuation, compare different cryptocurrencies, and make informed investment decisions based on market dynamics.
Tips: Enter market cap in currency units (typically USD), circulating supply in number of tokens. Both values must be positive numbers greater than zero for accurate calculation.
Q1: What is market capitalization in cryptocurrency?
A: Market cap represents the total value of all circulating tokens, calculated by multiplying current price by circulating supply.
Q2: Why is circulating supply important?
A: Circulating supply affects token scarcity and price. Lower supply with high demand typically leads to higher prices.
Q3: How accurate is this calculation?
A: This provides the theoretical price based on given inputs. Actual market prices may vary due to liquidity, trading volume, and market sentiment.
Q4: What's the difference between circulating and total supply?
A: Circulating supply includes tokens available to the public, while total supply includes all minted tokens (including locked or reserved tokens).
Q5: Can this be used for investment decisions?
A: This is an educational tool. Always conduct thorough research and consult financial advisors before making investment decisions.