What determines prices

[Jrmjrmjrm]

Hey just curious and seeing if anyone can give some insight.

I know that the price of cryptos is driven by supply/demand but how does this correlate to the utility of the coin?

For example, the big banks have now decided to use the Etherum platform which has caused the coins price to skyrocket. But I'm confused as to how they relate. With stocks obviously if the company is performing good then the stock price will raise but cryptos aren't stocks.

So will the future utility of a coin have a lasting effect on the coins price or is it all completely supply/demand with trading? Because if it's nothing more than trading it kind of undermines the entire utility. I know bitcoin is used as a store of wealth but my question is about alt coins.

I'm a big fan of Blockchain and have invested myself but I can't find an answer to this.
Thanks

[mrtrevorphilly]

For example, the big banks have now decided to use the Etherum platform which has caused the coins price to skyrocket. But I'm confused as to how they relate. With stocks obviously if the company is performing good then the stock price will raise but cryptos aren't stocks.

Thanks

The way I understand it is that if a bank or some big entity invests into, or starts using a cryptocurrency, which immediately
raises the price because they had to buy a big chunk of coins/platform, people/traders start investing in it because they expect
the price will go up and they make a buck.
Simply put, the higher the demand, the higher the price.

[lasry]

What determines the price are those investors, without them altcoin wont even be able to last. With some peoples supporting it and believing in its own stability some altcoins managed to stand firm on their selves. That's why campaigns are necessary for most altcoin , its to gather people's support and investments toward the said cryptocurrency.
Another factor maybe is POPULARITY, might have a higher price if popular.

[chrisfatos]

Many factors play a role in price change. One of the biggest factors are traders and investors. Manipulation by big time traders and investors aka whales. Popularity of the coin is also something important.

[swpqlhmgp]

The basis of the price must be the basis of the altcoin decision, which is the code. I always think that the development team's emphasis on the code will certainly determine the price of the altcoin. Otherwise, when there is nothing else for an altcoin to do beyond speculation, what else does it mean?

[fishbonez11]

I think that the price depends on the number of interested people investing. The more investments, the higher the price and vice versa.

[sparg]

There is no simple answer to this because the complexity of crypto world increased very much. There are more cases and the price is established different in each case.
So we have the matter when the price is driven by the supply and demand. This is the case of btc or eth. People need this coin in order to invest in differnt ICO (most of them accept only this coins). Most of the project keep theyre raised funds in btc or eth and exchange in fiat to cover the expenses but only on a minimum limit. So i can say that mostly tokens that are based on theyre own blockchain and facilitate other projects to develop on theyre blockchain have a demand rule for price.
On the other hand we have tokens that are a lot like stocks. They prove youre investment in a project. The profits from the pojects are being put into the token so if the project is a succes the token will increase too. The suply and demand rule can aply here too. 

[trademark]

Cryptocurrency is very tricky when it comes to determination of prices.  I would say, "Whales" determine prices the most.  For example, ever see a coin or token that has been dead for months and suddenly get's pumped to the moon?  Those are the Whales manipulating the price after they have accumulated a bunch. 

[tech72]

With the news, the coin gains credibility. So, people want to buy more. But there aren't many sellers willing to sell at normal price. So, this results into higher price trades because the coin isn't available at regular price.

[mpufatzis]

I believe only the traders determine the price.
Let say I have 10000 coins fron the coin named MyCatBob.
If the current price is 1000$ and I sell 1/10th at 900$ the price goes down 100$. Then I sell 1000 more coins at 850 and the price goes down once more. If I have a good volume of coins I can do what I want.
This can happen only in one condition, there are buyers.

If I have a friend and buys my coins, then I can move the price up as much I want, and when the market follows us, we (me and the friend) can sell our coins at a much higher price, and get rid of them.


If the coin is intruduced in the market and people buy and sell with it, that influences the market more because we have need for mor coins.

[qazgroup]

I think as of now the crypto markets are not regulated in anyway so mostly the value is based on speculation, that involves shilling, fud and similar terms introduced in the crypto community, as the community and cryptos go main stream i think the markets will show more stability, on a second note almost all cryptos are based on a deflationary models, so it is easy to understand that their value is going to increase with more development and more use. It is simple science that is applied in these decentralized currencies due to limited supply.

[lgpinto]

Utility has an impact on demand, which in turn has an impact on price.
Therefore utility has an indirect, yet significant impact on the price of coins.

There are quite a lot of articles (both scientific and in popular press) about this issue: https://hacked.com/understanding-cryptocurrency-price-factors/

[IlfarIldarovich]

Hi , I think the price depends primarily on the technology and the value of the coin , in the second place from investors ,people trust their capital to this technology

[BabatundeM]

In my opinion, there are so many factors that can influence or determine price in the market but what I believe that what determines it most is the level or rate of volatility of the market.

[gredisgold88]

too many subtances to determine the price an altcoin or digital assets. seen from how much supply in exchange, see price bid and ask , or knowing volume supply days . not only that , if token devidens, how many times devlopher share profit in tokens.

[faceoff97]

Hi , I think the price depends primarily on the technology and the value of the coin , in the second place from investors ,people trust their capital to this technology

Its actually dependent on the people who put interest on the project. Whales also has big impact on its value and they might probably can try to manipulate its value. Project has to offer promising future that will attract large number of people. Indeed the technology behind it also has big effect on why it may become trusted by many, it also serve as an market strategy that offer uniqueness from aby other coin.

[rallyko]

At this stage, the market is growing and falling on the news. The good news came out-the price for the altcoin rose, the news went bad-they all sell altcoin. Now the crypto-currency market is very easy to manipulate, especially for large players.

[helin9108]

Its right that demand and supply decide the price in crypto but first think that why is demand going high and why its price increasing , I think it depends that how much useful any coin and how it will solve the problems for what the coin was created. And also other factor that some big player and investor comes and buy the coin in big quantity so price goes high.

[Xfactor06]

Crypto currency is news driven, if there's a new progress on the said coin/token people will be keeping an eye on the said coin/token, if it's interesting enough people will invest on it and that will be the reason for the price to surge.

[aldrin6697]

Law of supply and demand is still the principle behind the prices, the greater the demand the faster the market the greater it increases in value. Low bids will be bought immediately and high bids will remain as the constant and bigger competition in the market will grow so will the price.