• Home
  • Podcast
  • App
No Result
View All Result
Subscribe
×
sign in
  • Learn
    • All
    • Crypto Basics
    • Token Metrics Tutorials
    • Weekly Index Performance
    Bitcoin: Everything You Need To Know

    Bitcoin: Everything You Need To Know

    What is Web 3.0? Everything You Need to Know

    What is Web 3.0? Everything You Need to Know

    NEW Token Metrics Crypto Market Indicators

    NEW Token Metrics Crypto Market Indicators

    Weekly Index Performance – May 26, 2022

    Weekly Index Performance – May 26, 2022

    NFTs Explained: What Are Non-Fungible Tokens?

    NFTs Explained: What Are Non-Fungible Tokens?

    Weekly Index Performance – April 27, 2022

    Weekly Index Performance – April 27, 2022

    When Does the Crypto Market Close?

    When Does the Crypto Market Close?

    Will Shiba Inu reach $1?

    Will Shiba Inu reach $1?

    How to Receive Crypto Alerts Through Token Metrics

    How to Receive Crypto Alerts Through Token Metrics

    • Crypto Basics
    • Weekly Performance
  • Market Analysis
    • All
    • Market Navigator
    • Market Update
    shanghai hard fork

    Shanghai Hard Fork – Investing Opportunities | Navigator

    The Bottom | Market Update

    The Bottom | Market Update

    The Metaverse Rally | Market Update

    The Metaverse Rally | Market Update

    The Dollar and DOGE| Market Update

    The Dollar and DOGE| Market Update

    Crypto Market Update

    Can Crypto Rally In October? | Market Update

    Crypto Rektember

    Can You Believe The Macro Shift ? Market Update

    Crypto Rektember

    From Rektember to a Brighter October | Market Update

    ethereum-its-time

    Ethereum: It’s Time | Market Update

    Europe is headed for a depression

    Europe is headed for a depression | Market Update

    • Market Update
    • Price Prediction
    • Market Navigator
  • Deep Dive
  • Hidden Gems
    • All
    • DeFi
    • Gaming and Metaverse
    • NFTs
    • Web 3
    Azuki NFTs

    Azuki | Hidden Gems – NFT

    LonelyPop

    LonelyPop, POTATOZ By 9GAG | Hidden Gems – NFT

    Moonrunners, Disco Kittiez | Hidden Gems – NFT

    Moonrunners, Disco Kittiez | Hidden Gems – NFT

    Evmos, Penumbra, Oasis Network | Hidden Gems – Web 3

    Evmos, Penumbra, Oasis Network | Hidden Gems – Web 3

    League Of Kingdoms, Aurory | Hidden Gems – Gaming and Metaverse

    League Of Kingdoms, Aurory | Hidden Gems – Gaming and Metaverse

    Orderly Network, zCloak Network | Hidden Gems – Web 3

    Orderly Network, zCloak Network | Hidden Gems – Web 3

    Sneakerheads, The Possessed NFT | Hidden Gems – NFT

    Sneakerheads, The Possessed NFT | Hidden Gems – NFT

    BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

    BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

    OnChainMonkey & RUNNER | Hidden Gems – NFTs

    OnChainMonkey & RUNNER | Hidden Gems – NFTs

    • DeFi
    • Gaming and Metaverse
    • NFTs
  • Code Reviews
  • Reports
    • All
    • Altcoin Quarterly
    • Awards and Ratings
    • News and Thought Leadership
    NFT Grade

    Introducing Token Metrics NFT Grade

    Token Metrics Research

    Introducing Token Metrics Research

    Research & Chill: 30% Token Metrics Discount

    Research & Chill: 30% Token Metrics Discount

    The Best Crypto News Sites of 2022

    The Best Crypto News Sites of 2022

    The Best Crypto Analysts of 2022

    The Best Crypto Analysts of 2022

    Token Metrics + CEX.IO Promotional Coupon

    Token Metrics + CEX.IO Promotional Coupon

    Partner plan

    NEW Token Metrics Partner Plan

    NEW Token Metrics Crypto Market Indicators

    NEW Token Metrics Crypto Market Indicators

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q4 2021

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q4 2021

    • Altcoin Quaterly
    • Moon Awards
    • News and Thought Leadership
  • TV
  • Learn
    • All
    • Crypto Basics
    • Token Metrics Tutorials
    • Weekly Index Performance
    Bitcoin: Everything You Need To Know

    Bitcoin: Everything You Need To Know

    What is Web 3.0? Everything You Need to Know

    What is Web 3.0? Everything You Need to Know

    NEW Token Metrics Crypto Market Indicators

    NEW Token Metrics Crypto Market Indicators

    Weekly Index Performance – May 26, 2022

    Weekly Index Performance – May 26, 2022

    NFTs Explained: What Are Non-Fungible Tokens?

    NFTs Explained: What Are Non-Fungible Tokens?

    Weekly Index Performance – April 27, 2022

    Weekly Index Performance – April 27, 2022

    When Does the Crypto Market Close?

    When Does the Crypto Market Close?

    Will Shiba Inu reach $1?

    Will Shiba Inu reach $1?

    How to Receive Crypto Alerts Through Token Metrics

    How to Receive Crypto Alerts Through Token Metrics

    • Crypto Basics
    • Weekly Performance
  • Market Analysis
    • All
    • Market Navigator
    • Market Update
    shanghai hard fork

    Shanghai Hard Fork – Investing Opportunities | Navigator

    The Bottom | Market Update

    The Bottom | Market Update

    The Metaverse Rally | Market Update

    The Metaverse Rally | Market Update

    The Dollar and DOGE| Market Update

    The Dollar and DOGE| Market Update

    Crypto Market Update

    Can Crypto Rally In October? | Market Update

    Crypto Rektember

    Can You Believe The Macro Shift ? Market Update

    Crypto Rektember

    From Rektember to a Brighter October | Market Update

    ethereum-its-time

    Ethereum: It’s Time | Market Update

    Europe is headed for a depression

    Europe is headed for a depression | Market Update

    • Market Update
    • Price Prediction
    • Market Navigator
  • Deep Dive
  • Hidden Gems
    • All
    • DeFi
    • Gaming and Metaverse
    • NFTs
    • Web 3
    Azuki NFTs

    Azuki | Hidden Gems – NFT

    LonelyPop

    LonelyPop, POTATOZ By 9GAG | Hidden Gems – NFT

    Moonrunners, Disco Kittiez | Hidden Gems – NFT

    Moonrunners, Disco Kittiez | Hidden Gems – NFT

    Evmos, Penumbra, Oasis Network | Hidden Gems – Web 3

    Evmos, Penumbra, Oasis Network | Hidden Gems – Web 3

    League Of Kingdoms, Aurory | Hidden Gems – Gaming and Metaverse

    League Of Kingdoms, Aurory | Hidden Gems – Gaming and Metaverse

    Orderly Network, zCloak Network | Hidden Gems – Web 3

    Orderly Network, zCloak Network | Hidden Gems – Web 3

    Sneakerheads, The Possessed NFT | Hidden Gems – NFT

    Sneakerheads, The Possessed NFT | Hidden Gems – NFT

    BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

    BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

    OnChainMonkey & RUNNER | Hidden Gems – NFTs

    OnChainMonkey & RUNNER | Hidden Gems – NFTs

    • DeFi
    • Gaming and Metaverse
    • NFTs
  • Code Reviews
  • Reports
    • All
    • Altcoin Quarterly
    • Awards and Ratings
    • News and Thought Leadership
    NFT Grade

    Introducing Token Metrics NFT Grade

    Token Metrics Research

    Introducing Token Metrics Research

    Research & Chill: 30% Token Metrics Discount

    Research & Chill: 30% Token Metrics Discount

    The Best Crypto News Sites of 2022

    The Best Crypto News Sites of 2022

    The Best Crypto Analysts of 2022

    The Best Crypto Analysts of 2022

    Token Metrics + CEX.IO Promotional Coupon

    Token Metrics + CEX.IO Promotional Coupon

    Partner plan

    NEW Token Metrics Partner Plan

    NEW Token Metrics Crypto Market Indicators

    NEW Token Metrics Crypto Market Indicators

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q4 2021

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q4 2021

    • Altcoin Quaterly
    • Moon Awards
    • News and Thought Leadership
  • TV
No Result
View All Result
No Result
View All Result
Home Learn Crypto Basics

What Causes Crypto To Rise?

by Fumnanya Akiti
2022/05/15
in Crypto Basics, Learn
Reading Time: 4 mins read
0
What Causes Crypto To Rise?
0
SHARES
102
VIEWS

What Causes Crypto To Rise?

Want to know what causes crypto to rise? You are reading the right article! Cryptocurrency values are highly subject to change and this either brings a smile on your face or a frown. So, understanding what causes crypto to rise will give you an upper hand in investing!

Government controlled currencies have value because consumers trust them. Cryptocurrencies, unlike fiat currencies or other government authorized means of exchange, aren’t controlled by a central body. Therefore, cryptocurrencies gain value through other ways. This article explains what causes crypto to rise.

Supply and Demand

Supply and demand determine the value of cryptocurrency, just like anything else that people desire. Increasing demand leads to an increase in price. For example, if there’s a fuel scarcity, the price of fuel increases due to the unequal demand with supply . The same supply and demand principle is applicable to cryptocurrencies. Cryptocurrency value rises when demand is higher than supply.

Each crypto project normally announces its token minting and burning plans to make the supply system known. Some coins, like Bitcoin, have fixed maximum supply (we know that there will always only be 21 million Bitcoins). Others, like Ether, have no limit on supply and some cryptocurrencies have instruments that burn available tokens to ensure the circulating supply does not grow too large and hence, slow inflation. To burn a token is to send them to an inaccessible address on the blockchain. To learn more about token burning, see our post here.

There is a difference in monetary policy among cryptocurrencies. Cryptocurrencies dictated entirely by the team in charge normally choose to either release more of a token or burn tokens to manage the supply. Demand can increase as a project gains awareness or as utility increases.  So, one thing that causes crypto prices to rise is consumer demand for a cryptocurrency against its availability.

Exchange Availability

Popular cryptocurrencies such as Bitcoin and Ether trade on multiple exchange platforms. These tokens have been listed on nearly every cryptocurrency exchange platform out there.

On the other hand, some smaller tokens may only be available on a few exchange platforms, thus making it unreachable to some investors. Many wallet providers charge fees for exchanging sets of cryptocurrencies across multiple exchange platforms. This then increases the cost of investing. Also, a thinly traded cryptocurrency may have a large spread on a small exchange platform, which can discourage some investors.

If a cryptocurrency becomes enlisted on many exchanges, it may increase the number of investors willing and able to buy it, and thus increase demand. As we know, if demand increases, the price goes up. Therefore, another factor that causes crypto to rise is the coin’s availability on exchange platforms.

Competition

Ever heard of a healthy competition? This is basically what this is. Sometimes when a new token launches, the act creates many buyers and suddenly its price increases. Competition can be two sided in terms of value creation because while competition can decrease the value of an asset, it can also increase the value of other assets.

There are thousands of various cryptocurrencies in existence as well as new projects and tokens that are launching every day. Because new competitors face relatively low entry barriers, creating a network of users is the most difficult and crucial aspect to a cryptocurrency’s success.

Applications built on blockchains can build networks quickly, especially if they have an advantage over competing applications. In a scenario where a new competitor gains momentum, it takes value from the incumbent token, sending the incumbent price down as the new competitor’s token rises in price.

Internal Governance

Cryptocurrency networks normally follow a fixed set of rules. There are tokens that are called governance tokens that hand over the future of a project including how a token is used or mined to stakeholders. For changes to be made to the protocol of a token, there needs to be an agreement among stakeholders. 

For example, Ethereum is trying to upgrade its network from a proof-of-work to a proof-of-stake consensus mechanism, which will make much of the expensive mining equipment in data centres or in people’s basements useless. This will surely have an effect on the value of Ether.

In theory, governance tokens should rise as the stakeholders deem fit. However, the slow process of improving protocols and updating software can limit cryptocurrency value appreciation.

To learn more about everything crypto, see our Learn section.

Tags: Crypto BasicsFreelearn
Fumnanya Akiti

Fumnanya Akiti

Related Posts

Help

Market Landing Page Tutorial

January 6, 2023
NFT Grade
News and Thought Leadership

Introducing Token Metrics NFT Grade

August 18, 2022
Token Metrics Research
News and Thought Leadership

Introducing Token Metrics Research

July 9, 2022
Next Post
Octopus Network Investment Report | Deep Dive

Octopus Network Investment Report | Deep Dive

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

COMPANY

  • About Us
  • Contact Us
  • Privacy Policy
  • Sitemap

7600 Chevy Chase Drive, Suite 300, Austin, Texas, 78752, USA
Email: info@tokenmetrics.com | Tel: +1-888-908-6536

DISCLAIMER

Token Metrics Media LLC is a regular publication of information, analysis, and commentary focused especially on blockchain technology and business, cryptocurrency, blockchain-based tokens, market trends, and trading strategies.

Token Metrics Media LLC does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Token Metrics Advisers LLC registered as an investment adviser or broker-dealer in any jurisdiction.

Information contained herein is not an offer or solicitation to buy, hold, or sell any security. The Token Metrics team has advised and invested in many blockchain companies. A complete list of their advisory roles and current holdings can be viewed here: https://tokenmetrics.com/disclosures/

Token Metrics Media LLC relies on information from various sources believed to be reliable, including clients and third parties, but cannot guarantee the accuracy and completeness of that information. Additionally, Token Metrics Media LLC does not provide tax advice, and investors are encouraged to consult with their personal tax advisors.

All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Ratings and price predictions are provided for informational and illustrative purposes, and may not reflect actual future performance.

Copyright © 2022 - Token Metrics - All Rights Reserved

No Result
View All Result
  • Learn
    • Crypto Basics
    • Weekly Performance
  • Market Analysis
    • Market Update
    • Price Prediction
    • Market Navigator
  • Deep Dive
  • Hidden Gems
    • DeFi
    • Gaming and Metaverse
    • NFTs
  • Code Reviews
  • Reports
    • Altcoin Quaterly
    • Moon Awards
    • News and Thought Leadership
  • TV

Copyright © 2022 Token Metrics All Rights Reserved