Definition ∞ Token share price refers to the market value of an individual digital token that represents a fractional ownership or claim within a decentralized project or entity. Unlike traditional stock shares, these tokens often grant governance rights, utility within a platform, or a share of protocol revenue. The price is determined by market forces of supply and demand, influenced by the project’s utility, adoption, and overall market sentiment. It reflects the perceived value of participation in the digital ecosystem.
Context ∞ The valuation of tokens that represent “shares” in decentralized protocols is a complex area, often debated in terms of their classification as securities. A key discussion involves the regulatory landscape surrounding these assets and how their utility affects their legal standing. Investors closely monitor the underlying project’s development and community activity, which significantly impacts the token’s market performance.
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