Let’s divide all cryptocurrencies into three categories: 1st tier currencies have good developer support + good community support + good institutional support + good media support. 2nd tier currencies have good developer + good community support. 3rd tier currencies have nothing.
People don’t come to the cryptocurrency market for a certain currency. They search for a currency to use and invest. Remember the Pareto rule that 80% of the market is held by a few strong actors. In our case it would be first tier currencies, like bitcoin, ethereum and ripple, and may be several other currencies. So as the interest of the general public to cryptocurrencies grows, the market cap of the all cryptocurrencies grows and the second tier currencies will get their 20% share of it. So assuming there are 50-100 second tier cryptocurrencies (with active community, active developers, good consumer value) and taking into account the number of coins of a currency, we can easily evaluate the “natural” interval of prices for this coin.
Let’s consider the current market with its capitalization of $77 billion dollar. We see that the three biggest players (bitcoin, ethereum and ripple), far exceeding other currencies, hold about 81% of the market. Taking into account the remaining share of the capitalization and the number of the coins, the “average” price for a currency like reddcoin would be about $0.005 – 0.01, which is even higher than the current price. For the capitalization of $1 trillion 50-100 cryptocurrencies of the second tier will have about $200 billion of the cap. About $2-4 billion per each. For Reddcoin it will mean the price of about 7 – 14 cents per coin.
There is nothing special or overhiped in the current RC price. The interval from $0.001 to 0.01 is what Reddcoin currently deserves taking into account the current capitalization of the total cryptocurrency market and the level of support. We can recently see the same pattern of price behaviour for other second tier currencies.
If the total crytpocurrency market will grow and reach at least $1 trillion of capitalization (which is a quite feasible target in the near future), the interval from 1 to 10 cents for reddcoin will be absolutely natural.
Reddcoin is currently a second tier currency de facto, but this place is not granted for ever. To just stay in this group both active community support and efforts from developers are required.
- If Reddcoin will gain sufficient institutional + media support, and enter the first tier of cryptocurrencies, the price can be one dollar or more. But even if it remains in the second tier category, the growth of total market to several trillions can easily transfer it in the dollar interval.
So for reddcoin fans, let’s support and promote our community, and let’s hope the developers will continue their great work, and we will see great future for the coin.