Learn what creates demand, why prices move, and what is just narrative.
Definition
Price is what buyers and sellers agree on today. Value is why people demand and hold the asset over time.
Three demand drivers
- Utility. Needed for fees or access.
- Monetary use. Treated as store of value or settlement.
- Speculation. Bought because others may buy later.
Supply design
Supply schedules matter. Fixed supply creates scarcity pressure if demand grows. Inflationary supply requires demand to keep up. Unlocks and emissions can dilute holders.
Practical tip
Always check market cap and circulating supply. Token price alone is misleading.
Narratives versus fundamentals
Narratives move price short term. Fundamentals decide whether a project survives long term. Ask. If usage vanished for a year, would anything still justify value.
Common mistakes
- Confusing low price with cheap.
- Ignoring dilution and unlock schedules.
- Buying only because a chart is green.
Warning
A strong story can pump price, but it cannot fix weak economics forever.
Quick quiz
- Name one driver of demand.
- Why does supply schedule matter?
- What metric beats token price for comparison?