Demystifying Crypto Tokenomics: 5 Key Metrics to Analyze When Comparing and Investing in Cryptocurrencies
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Tokenomics refers to analyzing crypto market cap, token supply, emission rate, and other metrics to inform investing decisions. Understanding tokenomics helps compare crypto projects.
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Key token supply metrics are circulating supply (tradable now), max supply (total possible), and total supply (created minus burned).
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Market cap is calculated by multiplying token price and circulating supply. Fully-diluted market cap uses max supply.
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Tokens without a max supply need sustained demand to maintain price as new tokens are created.
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Tokenomic data can be found on sites like CoinMarketCap and exchanges like Coinbase to analyze projects.