![]() How many of a given token are circulating? For Bitcoin it’s easy, just subtract how many haven’t been released from the max supply and you have your number. For Yearn it’s 36,666.Ĭirculating Supply is where things get trickier. For Crypto Raiders we set it at 100,000,000. What is the maximum potential supply of this token? For Bitcoin it’s 21,000,000. And they help us understand the market cap and fully diluted valuation. Circulating Supply & Max SupplyĬirculating supply and max supply help answer the questions 1 & 2, where is the supply right now, and where will it be in the future. And once you do, you’ll want to drill down on what the circulating supply and max supply numbers really mean. FDV ratio is one of the first things you’ll check out to give you some clues about the supply. If the market cap is 10% of the FDV and the tokens are all released in the next year, the project needs to grow 10x, or 1000%, in a year just to maintain its current price.īut if the market cap is 25% of the FDV and the tokens are released over 4 years, that’s only a 4x in growth over 4 years or about 40% growth year over year. ![]() If you see a big difference between the market cap and FDV, that means there are a lot of tokens locked up waiting to come on the market, and you should investigate how they’re going to enter the market (3 & 4) to see if you think the current price is justified. These two metrics can be helpful when combined with the other variables we’re going to cover because they give you an idea of how the market is valuing a project today, and how that project needs to grow in the future to justify its current price. So if a token has a price of $10, a circulating supply of 10,000,000, and a max supply of 100,000,000, then the Market Cap would be $100,000,000 and the FDV would be $1,000,000,000. The FDV is the current price multiplied by the max supply, if all tokens were in circulation. The market cap is the circulating supply of tokens multiplied by the token price. In this example, Bob gained $1.425 for each dollar he invested.The market cap and the fully diluted valuation (FDV) are your two easy initial metrics for assessing the value of a cryptocurrency or token. ROI tells traders how much they earned per dollar invested. In simple terms, Bob invested $200, withdrew $150 and could withdraw another $135, making his total $285. ![]() Suppose, the token’s current price is $1.5. Now, let's help Bob calculate his PnL and ROI. On May 12, 2023, he sold 60 tokens at $2.5 each. On March 10, 2023, he bought another 50 tokens at $2 each. On January 1, 2023, he bought 100 tokens at $1 each. Outflow Value is the total amount the user withdrew. ![]() Inflow Value is the total amount the user invested. PnL= Current Value − Inflow Value + Outflow ValueĬurrent Value is the current worth of the user’s asset. To facilitate calculations, three elements are required: a complete transaction history, the traded asset’s price for each transaction and the asset’s current value in USD. ![]() In the Portfolio feature, 1inch employs a formula for calculating a user’s PnL over any specific period of time. It allows users to run complete wallet-driven asset management, monitor real-time and overall token performance and optimize their investments, also displaying a full picture of their portfolio activity at any time. Therefore, in the 1inch Wallet’s recently released new version for Android, the Portfolio feature was added. In this post, we will take a close look at the method of calculating profits and losses (PnL) used in the 1inch Wallet’s recent upgrade.įor crypto traders and investors, accurate and up-to-date portfolio information is vital. ![]()
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