Circulating Supply
| What is Circulating Supply? Circulating Supply is the number of cryptocurrency coins or tokens that are publicly available and circulating in the market. This is an important metric to consider when analyzing cryptocurrency because it tells you how much of the coin is actually being used and traded. A high circulating supply can mean that a coin is more liquid and easier to trade, while a low circulating supply can mean that a coin is more scarce and harder to trade. When considering Circulating Supply, it's important to look at the total supply of the coin as well. The total supply is the total number of coins that will ever be created. So, if a coin has a total supply of 21 million and a circulating supply of 20 million, that means that there are only 1 million coins left to be mined or created. This can have a big impact on the price of a coin, as it becomes more scarce. It's also important to look at the circulating supply in relation to the total market cap. The market cap is the total value of all the coins in circulation. So, if a coin has a circulating supply of 20 million and a total market cap of $1 billion, that means each coin is worth $50 on average. If the circulating supply increases to 21 million, but the total market cap stays the same, then each coin is now worth $47.62 on average. This shows how the circulating supply can impact the price of a coin. In conclusion, Circulating Supply is an important metric to consider when analyzing cryptocurrency. It can give you insights into the liquidity of a coin, the scarcity of a coin, and how the price is impacted by the circulating supply. |
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