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Net Asset Value (NAV) is the value of an entity’s assets minus the value of its liabilities. It is often used in reference to funds or companies.
Net Asset Value (NAV) represents the value of an entity's assets minus the value of its liabilities. It is commonly used in the financial industry to determine the value of a company or an investment fund per share.
NAV = (Total Assets - Total Liabilities) / Total number of outstanding shares
It is calculated at the end of each trading day. In the context of cryptocurrencies, NAV can be used to evaluate the value of a crypto fund or the net worth of a blockchain project, taking into account its total cryptocurrency holdings and any liabilities it may have. However, given the volatile nature of cryptocurrency markets, the NAV of crypto-related entities can change rapidly.
A cryptocurrency fund might calculate its NAV by adding the current market value of all the cryptocurrencies it owns, then subtracting any liabilities, and dividing by the total number of outstanding shares in the fund.