> For the complete documentation index, see [llms.txt](https://lunacy-2.gitbook.io/lunacy-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lunacy-2.gitbook.io/lunacy-docs/core-concepts/market-capitalization-dynamics.md).

# Market Capitalization Dynamics

Market cap calculations consider the elastic supply:

```javascript
market_cap = current_token_supply * token_price
```

Special considerations:

* During new moon, token price = market cap (supply = 1)
* Price volatility may increase near supply extremes
* Trading volumes typically peak during full and new moons

{% hint style="info" %}
The unique supply mechanism creates interesting market dynamics, particularly during new moon periods when the token supply reaches its minimum.
{% endhint %}

## Price Impact Analysis

Price movement factors:

* Lunar phase transitions
* Trading volume
* Liquidity depth
* Market sentiment
* Moonbase timing

{% hint style="warning" %}
Traders should be aware of increased price sensitivity during low-supply periods.
{% endhint %}