OTV means ‘Outstanding Token Valuation’. It’s a cryptocurrency valuation metric that measures the total value of token that are planned and allocated for specific purpose.
The calculation of OTV is;
OTV= Token Price × Outstanding Supply
The accuracy of OTV depends on the meaning of outstanding supply of the token.
The Outstanding Supply = Total Supply – Unplanned Token
The OTV is best used for realistic medium term valuation assessment. It represents value of all tokens with planned purpose. For better understanding of OTV;
For simplicity; Let’s say PROJECT A has the following token distribution.
Total Supply = 1,000,000 token
Total Price = $2.50
Treasure Holding = 100,000 token
Ecosystem Grants = 100,000 token
Community Reserve = 200,000 token
Therefore; in this case
The Outstanding Supply = 1,000,000 – 100,000 – 100,000 – 200,000 = 600,000 token
OTV = $2.50 × 600,000 = $1.500,000