LIVEEveryone keeps asking me “will this/that coin hit the value of $1 or $x?”
In this post I will explain a few things so with a bit of your own research, you’ll be answering this question yourself.
Let’s start with a few simple terms:
✅ Market Cap: Imagine the market cap as the total value of all the tokens or coins of a cryptocurrency combined. So, if a cryptocurrency has a market cap of $1 billion, it means all the tokens or coins together are worth $1 billion.
✅ Circulating Supply: This refers to the number of tokens or coins that are currently available and being traded in the market. The circulating supply affects the price because it determines how rare or abundant a cryptocurrency is.
Note: Market Cap = Price per Token * Circulating Supply
✅ Potential: When a token's value increases significantly, it can indicate strong potential for growth. Investors may see this as a sign that the cryptocurrency has something valuable to offer, whether it's technology, utility, or market demand. However, it's essential to research and understand the reasons behind the increase to assess the long-term potential accurately.
➡️ Now with all this in mind, if a coin’s value is at 0.0001 and its circulating supply is 100 Million, then to reach $1 the market cap should equate to $100Million (market cap = $1 * 100Million). Which may be easily achievable.
However, if the circulating supply is 1Trillion, reaching a market cap of $1Trillion is undoubtedly a significant milestone, it requires overcoming numerous hurdles and challenges inherent in the cryptocurrency space.
Now you can replace the value of $1 to any other value and calculate the market cap yourself. And with a bit of additional research, you can make an educated assumption if a token can reach the target value.
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Follow me as I will explain - in my next post - why reaching a high market cap is challenging as well as the factors contributing to it.
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