📊 How to value project #crypto to find the profit taking point
1. Valuation based on capitalization ATH
ATH is All Time High - that is, the highest price or capitalization that the project has ever achieved since listing. We can easily check through the price graph and market capitalization graph on Coinmarketcap. For projects that are still actively operating, especially foundational projects like L1 L2, it is possible to bring Marketcap back to ATH in the next uptrend.
2. Pricing according to total market capitalization
Total Market Capitalization is the total value of all digital coins currently in circulation. To calculate the total market capitalization, we add up the total Market Cap of each coin. The price target based on this method depends on the growth of the overall market capitalization.
3. Competitive project-based pricing
This is a fairly common prediction method and can be applied to many different types of projects. After determining the market capitalization of the project, you need to determine whether the project you are valuing belongs to layer 1, layer 2 or Dapp. If they are of the same type, they will be compared. Absolutely do not compare platform projects like Layer 1 or Layer 2 with Dapps.
It's important that you really understand what the project is developing to come up with a realistic goal. At the same time, closely follow the project, to change the price target flexibly depending on the implementation situation of the project
#Bitcoin #ETH #Web3 #memecoin
