There are a lot of determinants of cryptocurrency value. The most important of them are supply and demand, scarcity, coin’s utility, project’s reputation and community support, rules and regulations.
Supply and demand
Basic economic principles apply to cryptocurrencies. If a coin has a huge supply or it's unlimited, but the demand for the coin is small, then the price of the coin may be low or even fall. At the same time, if the coin has a limited supply and the demand is high or keeps increasing, then the coin price may be high or even rise.
Scarcity
Scarcity element is linked to the supply and demand ratio. Cryptocurrencies that have a limited supply, such as Bitcoin, are deflationary in nature. This means that over time they will become less and less frequent, which means that their price has the potential to rise with the corresponding demand.
Coin's utility
Most cryptocurrencies are used for crypto network maintenance, operation, or performing certain tasks, such as governance and voting. The value of the coin, and hence the price, can also be formed depending on how important the cryptocurrency is for the network operation and its use by the network participants.
Project's reputation and community support
Public sentiment has a big influence on crypto prices and rankings. If cryptocurrency is community-driven, has an active use, and adoption in various fields, it can get both price support and demand for the coin. However, if a cryptocurrency network is experiencing a split in the community or its reputation has been damaged by certain events, then this can cause the price of the cryptocurrency to go down.
Rules and regulations
Attitude towards cryptocurrencies differs depending on the country, and in some cases they are not positive. If the regulator's position regarding all the cryptocurrency market or particular coin changes, it may affect the price and adoption level.