I’ve seen many crypto investors determine cryptocurrencies prices to the coin price itself. For example, Cardano has a coin price of $0.93 while Fantom is at $1.73. They would think that Cardano is cheaper than Fantom? This is absolutely incorrect! Besides, many crypto Instagram account always post content like “Top 3 Crypto Under $1”. That is all bullshit and how would that even make sense!? If you’re still unclear, let me explain.
Market Cap vs Actual Coin Price
For a coin such as Cardano with a price of $0.93, it is actually considered a bluechip coin just next to Ethereum and Solana. One should actually look at the market cap of a crypto rather than the actual coin price. Market cap is based on the total value of all a company's shares of coin. It is calculated by multiplying the price of a coin by its total number of outstanding holders. For example, a crypto with 20 million holders selling at $50 a share would have a market cap of $1 billion. So regardless of the actual price of a coin, if the market cap is very high like Cardano, it is already considered an “expensive” or blue chip asset.
My Take On Coin’s Real Price
Looking at the market cap would be more effective when comes to evaluating a coin’s real price. Therefore, the real price of Cardano(31B mc) isn’t just as cheap as a dollar. It is as much as both Solana(27b) + Fantom(4b). Therefore, if you really want to find the value of a coin, you should be looking at how the coin is doing, what’s the market cap, who is the team behind, their roadmap, its utilities and etc.
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Disclaimer:
All of these are merely my knowledge and not financial advice. Please do your own due diligence and have conviction before investing. The information above is based on many hours of research out of my own curiosity/interest in YouTube, Google, blogs and discord communities. Leveraging & filtering information from other crypto enthusiasts and analysts.
