Supply And Demand
Another significant factor that dictates the price of any cryptocurrency is supply and demand. Numerous cryptocurrencies have a limited supply. This means if there’s a high demand and low supply, the price will increase, and on the flip side, if the demand is low and the supply is high, the value/price will decrease.
Cryptocurrencies are exposed to the network effect, wherein as more people become a part of the project, its value increases. Since most are userbase-driven, it is one of the critical factors that affect the price of cryptos.
