how does circulating supply affect cryptocurrency

The formula is the following: Market Cap / Price = Circulating Supply For Bitcoin, the $380 billion market cap can be divided by the $20,000 price, producing a result of 19 million BTC. For example, the circulating supply of Bitcoin will gradually increase until the max supply of 21 million coins is reached. How does the supply of a cryptocurrency token affect its tokenomics The latest moves in crypto markets, in context. The market cap of a coin is the total value of all coins in circulation and is one metric used to determine value. 2023 - Sadvin.com. 0xEf9AAb0e49FCE5cFfA858c1935558cec6601357E, LTC Address: How to Calculate Circulating Supply? In terms of total supply, Bitcoin has a maximum supply of 21 million coins. Crypto Token Supply: Maximum, Circulating, and Total Supply - Trend Online This is true especially for bigger coins, where volume manipulation can be hidden in normal volume. A good circulating supply creates demand with investors. The market cap of a cryptocurrency is determined by the current price multiplied by the circulating supply: Market Cap = Price (X times) Circulating Supply Coinmarketcap is currently the most popular website to keep track of market cap of cryptocurrencies and to get an overview of how popular each currency is. If you are new to crypto currency and would like to learn more we suggest you to go through our crypto dictionary. Maximum Supply is the number of coins that will ever exist on the market. This can drive up the price of the token and create a valuable asset for investors. As mentioned earlier, many newbie traders get confused between total supply and circulating supply. How Does Market Cap Affect Crypto Prices? What happens if circulating supply reaches max supply crypto? The circulating supply matters because it suggests how scarce a particular asset is. But not many know about it or how the circulating supply gets calculated. Circulating supply is a common term that we often get to hear when it comes to cryptocurrencies and other financial markets. Gate.io Blog delivers in-depth contents related to blockchain and cryptocurrency. Miners have controlled the supply, and its block reward (refers to the number of Bitcoins you get if you successfully mine a block of the currency) decreases every four years. While this can work well in an up trending market, in a down trending market the results can be disastrous.

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