How to find the maximum potential of any altcoin?
Figuring out altcoins maximum potentialThe less known altcoins we buy, the more we hope that the price will go up gazillion times and our expectations can be very optimistic. However, sometimes your expectations can be 100% unrealistic without you even knowing it.
What do we mean by crypto maximum potential?
When we are talking about the maximum potential of an altcoin, then we are only thinking about one simple thing.
Do you already now what it could be?
No, I'm not thinking about potential. Yet.
By maximum potential I mean this - how much can the altcoin's price go up until it would have to overtake Bitcoin (BTC) and become the most popular coin the world.
Obviously, any coin could easily pass Bitcoin, but in most cases it's rather unlikely.
So when we say altcoin maximum potential, we mean that how many times can the price of the crypto grow until it's as big as Bitcoin.
Why is the crypto's maximum potential important?
These days there are many people in Twitter asking what's the next coin to go up 1000x.
Let's be honest, that's something we'd all like to know.
But then there are numerous people who say Shiba Inu (SHIB) or Polkadot (DOT) or something similar.
Now, don't get me wrong, those are not bad cryptos at all. I personally love Polkadot. But the chances for these two to go up in value 1000x are pretty much impossible.
At least within the next 10 years (I have to confess, the 10 years is a totally random number I just made up).
It's impossible because they can each gain "only" about 30-40x in value before they have to overtake Bitcoin and become the most popular crypto in the world.
It can happen, but still, there's a big difference between 30x and 1000x.
And that's the reason why we should always consider the maximum potential price of any altcoin we buy.
Just to keep our expectations realistic.
Look at this list below, just to get an idea of the maximum potential price of some coins:
Click on list headings to reorder the crypto list. All prices are in EUR.
| Cryptocurrency | Total Supply | Circulating Supply | Max Potential Price | Max Growth | Current Price |
|---|---|---|---|---|---|
| Ethereum | 120511086.33572 | 120511086.33572 | 3393.48 | 2.24063x | 1514.52 |
| Tether | 68064632221.561 | 68064632221.561 | 6.00605 | 6.45072x | 0.931066 |
| BNB | 157219628.63 | 134940326.76 | 3030.61 | 9.99575x | 303.19 |
| USD Coin | 41975356144.281 | 41974317620.971 | 9.7429 | 10.4843x | 0.929287 |
| XRP | 99989130718 | 50799084881 | 8.04738 | 21.7477x | 0.370033 |
| Binance USD | 16247232438.73 | 16247232438.73 | 25.1612 | 27.0796x | 0.929156 |
| Cardano | 45000000000 | 35045020830.323 | 11.665 | 32.1318x | 0.363035 |
| Dogecoin | n/a | 138028226383.7 | 2.96281 | 34.6439x | 0.085522 |
| OKB | 300000000 | 246638974 | 1657.48 | 40.4264x | 41 |
| Polygon | 10000000000 | 9005469069.2849 | 45.3946 | 40.5309x | 1.12 |
| Solana | 540242079.27447 | 372699312.39002 | 1096.86 | 50.8984x | 21.55 |
| Shiba Inu | 999990968807040 | 589367448248320 | 0.000693882 | 51.8985x | 0.00001337 |
| Lido Staked Ether | 5057153.0353983 | 5057146.6374636 | 80836 | 53.6289x | 1507.32 |
| Polkadot | 1280654487.8217 | 1199705354.7156 | 340.75 | 54.8711x | 6.21 |
| Litecoin | 84000000 | 72219758.233471 | 5660.49 | 63.1047x | 89.7 |
| Avalanche | 420485878.37963 | 315080734.95356 | 1297.44 | 69.8677x | 18.57 |
| TRON | 91768730731.63 | 91767647642.241 | 4.45472 | 75.7773x | 0.058787 |
| Uniswap | 1000000000 | 753766667 | 540.47 | 84.5806x | 6.39 |
| Dai | 5116702945.9704 | 5116702945.9704 | 79.8951 | 85.924x | 0.929834 |
| Cosmos Hub | n/a | 292586163.82743 | 1397.71 | 105.012x | 13.31 |
| Wrapped Bitcoin | 176647.0713473 | 176647.0713473 | 2314980 | 109.471x | 21147 |
| Chainlink | 1000000000 | 491599971.23056 | 831.879 | 128.575x | 6.47 |
| Toncoin | 5057362773.9969 | 1473591410.7431 | 277.417 | 131.477x | 2.11 |
| LEO Token | 985239504 | 931813003.9 | 438.714 | 130.57x | 3.36 |
| Ethereum Classic | 210700000 | 139154415.53931 | 2937.74 | 139.361x | 21.08 |
You can see the maximum potential prices of many other coins here.
But the maximum potential price doesn't actually tell you anything about the coin's real potential.
What doesn't the maximum potential show you?
While knowing the maximum potential price of an altcoin does help you keep your expectations realistic, it does not actually tell you that the coin has the realistic potential to grow that much.
It only shows how much the coin would have to grow to reach Bitcoin's height.
The maximum potential doesn't tell you whether it's actually a good coin, or whether it's a scam.
It doesn't tell you whether it actually has what it needs to even go up 2x during its lifetime.
Step by step: how to calculate altcoin maximum potential
The formula to calculate the maximum potential of any crypto coin is this:
BTC price / (Current supply of altcoin/ Current supply of BTC)
Note that should any other crypto like Ethereum (ETH) actually overtake Bitcoin, then you would use Ethereum's price and circulating supply instead of Bitcoin's.
And that's all you need.
Other factors to consider when identifying altcoin potential
If you're looking for altcoin's actual potential, you should research each coin you're thinking of buying first.
Important aspects to consider:
- Team
- Adoption
- Tokenomics
- Technology
- Community
Read more about how to identify a good altcoin.
Conclusion
All in one - stay two feet on the ground even when knowing that only the sky is the limit. Crypto prices can go up a lot, and I mean a loooot, but even there are realistic limits you should always keep in mind.
I became interested in cryptocurrencies only a bit more than two years ago. Since then I have been in investing in cryptos using different exchanges. And I also launched Cryptolorium.com when I started trading, just to share my crypto journey and my results.
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