How does circulating supply affect crypto?

The circulating supply of a cryptocurrency can increase or decrease over time . For example, the circulating supply of Bitcoin will gradually increase until the max supply of 21 million coins is reached. Such a gradual increase is related to the process of mining that generates new coins every 10 minutes, on average.

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Can crypto circulating supply decrease?

Buying and selling Crypto does not increase nor decrease the circulating supply. Circulating supply is the amount of Cryptocurrency being in current use and actively transacted. It is the amount of coins accessible to the public. Circulating supply can only be diminished by burning coins (destroying them).

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What does circulating supply mean?

Circulating Supply is the total number of coins or tokens that are actively available for trade and are being used in the market and in general public . When a company creates a particular number of tokens, only a portion of it instead of the whole supply is made available for circulation.

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What does Max supply mean?

Max supply is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency . Once the maximum supply is exhausted, no new coins or tokens will be produced or mined. Most cryptocurrencies come with a maximum supply.

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