How to calculate the target price of a cryptocurrency
To analyze and know whether a digital currency can reach a certain price, for example $100, there are some data that you need. This information will help you estimate based on the data available from the site.
CoinMarketCap.
Required data
- Current price of the currency: (Current Price)
(Circulating Supply): The total number of currencies in circulation.
(Market Capitalization): Current market value
Max Supply if any
Calculation steps
1 Get the current price of the coin from CoinMarketCap.
2. Get the total number of coins in circulation (Circulating Supply)
3 According to the market value required to reach the target price using the following equation:
Required Market Value - Target Price x Total Number of Coins in Trade
Example:
Current price: $1
- Target price: $100
Total number of coins in circulation 10 million
Required market cap = 100 × 1 = $10,000,000 billion.
Check accessibility
Knowing if the currency can reach the target price
Compare the required market value to the current market value.
- If the required market value is very large compared to the market or is illogical, for example, greater than the market value.
For Bitcoin, reaching the target price may be unrealistic.
Important Notes
Coins with a large supply need a huge market cap to reach high prices.
- The maximum supply of the currency should be taken into account, if any.
External factors such as demand, partnerships and currency usage affect the target price.
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