Post
Topic
Board Altcoin Discussion
Re: What determines the price of an ALTCOIN ?
by
kevinzxz
on 13/02/2021, 15:55:27 UTC
Hello,

I have a question, which I couldn't understand. What determines the price of an ALTCOIN?

for example:

ranked 4: Cardano price is 0.95 USD .... market cap: $30,158,999,828

while

ranked 5: Polkadot price is 25.14 USD .... market cap:  $24,025,000,997

on the other hand,

ranked 21: Avalanche price is 46 USD .... market cap: $3,610,321,000


What did I miss here ? why for example cardano is cheaper while avalanche or balancer coin has lower market cap but they are expensive than cardano and Polkadot ?

thank you in advance.



I think ranking and market cap of coin do not determine the price, because what determine the price is circulating supply, for example:
1. Cardano
Circulating Supply
31,112,484,646 ADA
2. Polkadot
Circulating Supply
907,726,137 DOT
3. Avalanche
Circulating Supply
76,937,055 AVAX
from the data above, you can see that the price of a coin that has a slightly circulating supply is definitely higher than coin that has a large circulating supply, so in my opinion, what determine the price of a coin is the circulating supply and not the ranking or market cap.