Generally speaking, when the maximum supply is reached, there will be fewer coins available on the market . This is expected to create market scarcity, which may eventually lead to deflation conditions (or 0% inflation rates).
Read moreWhat is circulating supply Coinbase?
The term circulating supply refers to the number of cryptocurrency coins or tokens that are publicly available and circulating in the market . The circulating supply of a cryptocurrency can increase or decrease over time.
Read moreIs it better to have a high or low circulating supply?
The higher a token’s market cap and lower its circulating supply, the more valuable it could be in the future.
Read moreIs a low circulating supply good?
A low circulating supply usually means the cryptocurrency features a higher price, attracting more investors .
Read moreWhat is circulating supply and Max supply?
The total supply is basically the sum of the circulating supply and the coins that are locked up in escrow. On the other hand, the max supply quantifies the maximum amount of coins that will ever exist, including the coins that will be mined or made available in the future.
Read moreDoes circulating supply matter?
The Circulating Supply metric is of utmost importance within the crypto asset industry and for good reason. It, along with a crypto asset’s per unit price, allows investors to better understand the relative valuation of different assets.
Read moreWhat is a good circulating supply in cryptocurrency?
For example, even though nominally the circulating supply of Bitcoin (BTC) should be over 18 million coins — as that is how many Bitcoin have been mined since the network’s inception — it is estimated that around 4 million BTC have been permanently lost, placing the true circulating supply closer to 14 million .
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