Price, supply, and the buyers on the other side.

Multiply the unit price by the supply

The $2 token has 100 units in circulation. At $2 each, those units have a quoted value of $2 × 100 = $200. The 20-cent token has 1,000 units, so its quoted value is $0.20 × 1,000 = $200 too.

This calculation is called market capitalization, usually shortened to market cap. It multiplies a reference price by the circulating supply. It puts the price of one unit beside the number of units available in the market.

Market cap is not money sitting in a vault for holders to withdraw. It is not the total amount people paid into the project. A token also does not automatically represent ownership of a company.

The unit price is useful when trading, but a low unit price alone does not make a token a bargain. Market cap adds context. It still does not tell you a fair price or whether the price will rise.

Work out what the available buyers would pay

Suppose the latest trade was at $10 per token. You own ten tokens, so a screen values them at $100. That calculation assumes the same $10 for every unit.

Now read the current buy offers. Buyers will take two tokens at $10, three at $9, and five at $8. The first two bring $20, the next three bring $27, and the final five bring $40. Selling all ten into those offers brings $20 + $27 + $40 = $87 before fees.

The list of buy and sell offers is an order book. A buy offer is also called a bid. A larger sale can use up the high bids and reach lower ones, as it does here.

How easily you can trade an amount without moving the price much is called liquidity. Some markets use a pool of assets and a pricing rule instead of an order book. In either design, your own trade can change the price it receives. That effect is called price impact.

Offers can be canceled and pool balances can change before your trade finishes. Your result can therefore differ from an earlier quote. Trading volume counts past trading; it does not tell you how many buyers are waiting for your sale now.

Check the units that could reach the market later

Circulating supply is an estimate of units available in the market. Some units may still be locked or not yet created. Check how the data provider counts them.

A second measure applies the current price to a broader supply figure, often the total or maximum supply. It is called fully diluted valuation, or FDV. The exact supply definition can differ between providers.

For example, 100 circulating tokens at $2 give a $200 market cap. If the stated maximum is 500, the FDV is $2 × 500 = $1,000. The calculation holds price at $2. It does not predict what the other 400 tokens will sell for.

Tokens given to a team may become available over time under a vesting schedule. An unlock removes a restriction on some tokens. It may make them sellable, but it does not force their owners to sell.

Check the dates, who receives the tokens, and who can change the supply or schedule. A few large holders may affect sales or voting. But one large address can also hold money for many customers, so investigate who it represents before drawing a conclusion.

Check where the numbers came from

Imagine a tiny trade sets a high price in a market with few buyers. Multiplying that price by a huge supply can produce an impressive market cap. It still does not produce buyers for all those units.

The supply estimate may also be incomplete or disputed. Read how it was measured and compare other evidence. A precise-looking number can rest on uncertain inputs.

Creating more units does not automatically create more wealth. In a token split, suppose every holder receives ten units for each old one. If the price per new unit falls to one tenth, each holder has the same quoted value. Demand or other changes could produce a different result.

Read price, supply, possible future supply, holder control, available buy offers, and fees together. They help you ask better questions. None guarantees that the token is useful or that you can sell it later.