Cryptocurrencies have gained significant popularity in recent years, and one important metric that investors and enthusiasts closely monitor is the circulating supply. But what exactly is circulating supply and why is it relevant in the world of crypto?
Definition of Circulating Supply
Circulating supply refers to the total number of coins or tokens of a particular cryptocurrency that are actively available in the market for trading and being used in various transactions. It represents the portion of the total supply that is in distribution and in the hands of investors, users, and traders.
Unlike the total supply, which encompasses the maximum number of coins that can ever exist, the circulating supply takes into account factors like locked tokens, treasury reserves, and burned or destroyed coins. It provides a more accurate representation of the liquidity and availability of a cryptocurrency.
Difference between Circulating Supply, Total Supply, and Max Supply
Understanding the distinction between circulating supply, total supply, and maximum supply is crucial for comprehending the dynamics of different cryptocurrencies.
Total supply refers to the absolute maximum number of coins that will ever exist for a particular cryptocurrency. For example, Bitcoin’s total supply is capped at 21 million coins. It is important to note that not all coins are currently in circulation, as the Bitcoin network gradually releases new coins through a process known as mining.
On the other hand, circulating supply represents the actual number of coins that are actively circulating in the market at any given time. For instance, the current circulating supply of Bitcoin is around 18.98 million coins, while Ethereum’s circulating supply stands at 120 million coins. This metric helps determine the current level of market saturation and liquidity.
Maximum supply, as the term implies, refers to the highest number of coins that a cryptocurrency can ever have. While Bitcoin has a maximum supply limit of 21 million coins, Ethereum does not have such a cap, which means it has the potential for inflation concerns due to the steady increase in its total supply over time.
Calculation of Market Capitalization
The circulating supply of a cryptocurrency plays a significant role in calculating its market capitalization. Market capitalization, often referred to as market cap, is calculated by multiplying the market price of a coin by the number of coins in circulation. It provides an estimation of the total value and size of a particular cryptocurrency.
For instance, if a cryptocurrency has a circulating supply of 100 million coins and a market price of $10 per coin, its market capitalization would be $1 billion.
Market cap is a crucial metric used by investors, traders, and analysts to gauge the relative size and significance of different cryptocurrencies in comparison to one another. It provides insights into the overall market value and investor sentiment towards a particular coin.
Key Takeaways:
- Circulating supply refers to the actively available coins or tokens in the market for a specific cryptocurrency.
- Total supply represents the maximum number of coins that can ever exist, while maximum supply refers to the highest number of coins a cryptocurrency can have.
- Market capitalization is calculated by multiplying a cryptocurrency’s market price by its circulating supply.
- Circulating supply impacts market liquidity, investor sentiment, and the overall value of a cryptocurrency.
- Bitcoin, Ethereum, and Binance’s BNB showcase different approaches to managing their circulating and total supplies.
Definition of Circulating Supply
Circulating Supply in the cryptocurrency market refers to the number of publicly available cryptocurrency coins or tokens that are actively circulating and traded within the market. It represents the portion of the total supply that is readily accessible to the general public for buying, selling, or using in transactions. The circulating supply plays a crucial role in determining the market value and liquidity of a cryptocurrency.
The circulating supply of a cryptocurrency can vary based on several factors. For example, Bitcoin (BTC) has a predetermined total supply of 21 million coins, with an estimated maximum supply expected to be reached in 2140. Currently, there are around 19.1 million BTC in circulation, accounting for approximately 91% of the total max supply. However, it’s important to note that approximately 3.79 million BTC is estimated to be lost or inaccessible in wallets, reducing the actual circulating supply to around 14.3 million BTC.
Ethereum (ETH) is another popular cryptocurrency that has seen changes in its circulating supply over time. After the implementation of the EIP-1559 upgrade, which burns base ETH gas fees, the inflation rate of Ethereum decreased significantly. As a result, the circulating supply of ETH became more regulated and predictable.
It’s worth mentioning that different cryptocurrencies may have their own unique mechanisms for determining the circulating supply. Some tokens have burned or locked up coins, while others reserve coins for staking rewards. It’s important for investors and market participants to carefully evaluate the circulating supply of a cryptocurrency, as it directly affects the scarcity, utility, and overall market dynamics of the coin or token.
The Role of Circulating Supply in Market Capitalization
The circulating supply of a cryptocurrency plays a crucial role in the calculation of market capitalization. Market capitalization is widely used to gauge the size and value of a cryptocurrency in the market. It is calculated by multiplying the price per unit by the total number of coins or tokens in circulation.
Market capitalization is an important metric for investors and traders, as it provides insights into the relative position and value of a cryptocurrency compared to others in the market. It can also be used as a reference point for assessing the overall market sentiment and interest in a particular cryptocurrency.
For example, Cardano (ADA) has a circulating supply of 33.75 billion coins, which represents 75% of its maximum supply of 45 billion ADA. The market capitalization of Cardano is calculated by multiplying the circulating supply by the price per ADA coin.
It’s important to note that market capitalization-based rankings can be influenced by the circulating supply of a cryptocurrency. Some projects may try to maximize their circulating supply to boost their market cap rankings, potentially attracting more attention and investment. However, it’s crucial for investors to consider other factors such as technology, adoption, and team behind the project rather than solely relying on market capitalization as a measure of value.
To summarize, circulating supply is a fundamental metric in the cryptocurrency market that defines the number of publicly available coins or tokens actively traded in the market. It influences market dynamics, liquidity, and overall assessment of a cryptocurrency’s value. Understanding the circulating supply provides valuable insights for investors and market participants to make informed decisions in this evolving and dynamic industry.
Difference between Circulating Supply, Total Supply, and Max Supply
When it comes to cryptocurrencies, understanding the difference between circulating supply, total supply, and max supply is crucial. Each term represents a different aspect of a cryptocurrency’s availability and overall supply.
Circulating Supply
Circulating supply refers to the number of coins of a particular cryptocurrency that are currently in active circulation and available to the public. It represents the best approximation of the number of coins being traded and used within the market. The circulating supply is dynamic and can change as coins are minted, burned, or locked up. It plays an important role in determining a cryptocurrency’s liquidity and market price.
Total Supply
Total supply, on the other hand, represents the entire volume of coins that currently exist for a specific cryptocurrency. It includes all coins that have been minted or created, regardless of their availability for trading. However, it excludes any verifiably burned coins or coins that are locked up in escrow. The total supply gives a comprehensive view of the cryptocurrency’s overall capacity.
Max Supply
Max supply refers to the maximum number of coins that will ever exist for a particular cryptocurrency. It represents an upper limit on the total number of coins that can be in circulation. Some cryptocurrencies, like Bitcoin, have a fixed max supply, meaning that there will only ever be a specific number of coins available. Other cryptocurrencies, like Ethereum, do not have a maximum supply limit, allowing for the potential creation of new coins over time.
| Cryptocurrency | Circulating Supply | Total Supply | Max Supply |
|---|---|---|---|
| Bitcoin (BTC) | 18.98 million coins | 21 million coins | 21 million coins |
| Ethereum (ETH) | 120 million coins | N/A | No maximum supply limit |
| Tether (USDT) | 81 billion coins | N/A | No maximum supply limit |
Understanding the difference between circulating supply, total supply, and max supply is valuable for investors and traders in the cryptocurrency market. It provides insights into a cryptocurrency’s availability, liquidity, and potential future growth. By analyzing these supply metrics, individuals can make informed decisions when evaluating different cryptocurrencies and their market dynamics.
Calculation of Market Capitalization
When it comes to evaluating the size and value of a cryptocurrency, market capitalization plays a pivotal role. It is determined by multiplying the current market price per token by the circulating supply of the cryptocurrency.
The formula for calculating market cap is:
Market Cap = Current Price per Token x Circulating Supply
For instance, let’s consider Bitcoin, the largest cryptocurrency by market capitalization. With a current price of $26,674.10 per BTC and a circulating supply of 19,491,887 bitcoins, we can calculate its market cap:
Market Cap of Bitcoin = $26,674.10 x 19,491,887 = $519,928,543,026.70
| Cryptocurrency | Price per Token | Circulating Supply | Market Cap |
|---|---|---|---|
| Bitcoin | $26,674.10 | 19,491,887 | $519,928,543,026.70 |
Calculating the market capitalization provides valuable insights into the size and perceived value of a cryptocurrency in the market. It helps investors, traders, and enthusiasts assess the relative importance and potential growth of different coins.
Factors Influencing Market Capitalization
Several factors can influence the market capitalization of a cryptocurrency:
- Price fluctuations: Volatility in the market can cause significant changes in a cryptocurrency’s market cap. Sharp price increases or decreases can amplify market capitalization shifts.
- Positive news and institutional adoption: Favorable news events, such as regulatory approvals or partnerships with major institutions, can boost market sentiment and increase demand for a cryptocurrency, potentially driving up its market cap.
- Trading volume: Higher trading volume typically indicates higher liquidity and market activity, which can impact a cryptocurrency’s market cap.
- Economic factors and market conditions: Overall market trends, economic factors, and investor sentiment can influence price movements, affecting a cryptocurrency’s market capitalization.
Investors utilize market capitalization as a tool for evaluating risk, diversification, and growth potential in their cryptocurrency investment strategies.
Now, let’s explore the concept of circulating supply and its significance in the crypto market in the next section.
Factors Influencing Circulating Supply
The circulating supply of a cryptocurrency is influenced by various factors that shape its availability and market dynamics. These factors play a crucial role in determining the liquidity, scarcity, and price value of a particular cryptocurrency.
Mining
For mineable cryptocurrencies like Bitcoin, the circulating supply gradually increases through the process of mining. Miners validate transactions and add them to the blockchain, and as a reward for their efforts, they receive newly minted coins. This continuous mining activity contributes to the growth of the circulating supply over time.
Coin Burning
On the other hand, coin burn events can decrease the circulating supply of a cryptocurrency. Coin burning involves permanently removing coins from circulation, typically through a deliberate act of destruction. Exchanges like Binance often perform coin burns, eliminating a certain number of coins from the market. Coin burning is implemented to reduce supply, increase scarcity, and potentially drive up the value of the remaining tokens.
Accidental Losses
Accidental losses also impact the circulating supply of cryptocurrencies. These losses occur when users send coins to irrecoverable addresses or lose access to their wallets. When coins are lost or inaccessible, they effectively reduce the number of coins circulating in the market, further influencing the overall supply.
By understanding the factors that influence circulating supply, investors and traders can gain insights into the dynamics that shape the price, volatility, and market demand of cryptocurrencies. These factors highlight the delicate balance between supply and demand, token scarcity, and the effects of mining and coin burning on the circulating supply.
Next, let’s explore the limitations of using the circulating supply metric and its importance in the crypto market.
Limitations of Circulating Supply Metric
The circulating supply metric, although widely used and referenced in the cryptocurrency industry, has its limitations. It is crucial for investors and traders to understand these limitations and consider them when evaluating the market dynamics of different cryptocurrencies.
One of the main limitations of the circulating supply metric is its estimation nature. The true circulating supply cannot be precisely determined, as the network lacks accurate knowledge of how much of the total supply is actively circulating. Therefore, the circulating supply is often an approximation based on available information.
For example, let’s consider Bitcoin’s model where only mined coins are considered part of the market cap. This approach advocates for a similar calculation of circulating supply, focusing on the coins actively in circulation rather than including coins that are lost or inaccessible. It is estimated that around 4 million BTC has been permanently lost, which significantly affects the true circulating supply of Bitcoin.
Additionally, the presence of staked tokens poses another challenge in defining circulating supply. Staked tokens, such as the ICP tokens in the case of the Internet Computer Protocol, are considered part of the existing supply. However, it is essential to distinguish between tokens available for trading and those used for staking. In proof of stake coins, such as the ICP, staked tokens are typically considered circulating, following industry standards for defining circulating supply.
Coin Market Cap, the popular cryptocurrency market data provider, is transparent about the changes in the circulating supply metric. However, it is worth noting that these changes often happen behind the scenes without extensive public visibility. Transparency is crucial to maintaining trust and credibility in the industry.
Changing the definition of circulating supply can have significant consequences on investor sentiment and market dynamics. Altering the metric may lead to panic selling and accusations of market manipulation. It is important to acknowledge these concerns and exercise caution when considering altering established metrics.
In advocating for a simple definition of circulating supply, the focus should be on tokens that are ready for transfer. Such a definition would exclude tokens that are staked or held by entities like the DFINITY Foundation. By providing a clear definition, the industry can strive for transparency and maintain a positive image while preserving the technological focus.
Moreover, changing the definition of circulating supply can impact a cryptocurrency’s ranking on platforms like CoinMarketCap. A higher ranking can enhance a token’s visibility and attract more buyers due to increased credibility. However, it is essential to consider the potential accusations of market manipulation that may arise from altering established metrics.
Overall, the circulating supply metric, while imperfect, plays a crucial role in assessing a cryptocurrency’s market dynamics. Knowledge of the limitations and potential implications of altering this metric is vital for investors, traders, and industry participants seeking to make informed decisions.
Table: Comparison of Key Cryptocurrency Circulating Supplies
| Cryptocurrency | Circulating Supply | Total Supply |
|---|---|---|
| Bitcoin (BTC) | Approximately 18.98 million | 21 million |
| Ethereum (ETH) | Approximately 120 million | No upper limit, roughly 18 million minted annually |
| Tether (USDT) | Approximately 81 billion | No detailed information available |
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Importance of Circulating Supply in Crypto Market
The circulating supply plays a vital role in the crypto market as it directly impacts the market value of a cryptocurrency. Understanding the importance of circulating supply is crucial for effective navigation of the cryptocurrency landscape and making informed investment decisions.
Circulating supply refers to the actively traded tokens or coins available for trading, buying, selling, or transferring among users. It is a key metric used to assess the relative size and value of different cryptocurrencies. Market capitalization, which is calculated by multiplying the price per token by the circulating supply, provides an estimate of a cryptocurrency’s value.
The circulating supply can influence the price and liquidity of a cryptocurrency. Generally, higher circulating supply may lead to lower token prices, as the market becomes more saturated with available tokens. On the other hand, a lower circulating supply may create scarcity, potentially driving up the demand and value of a cryptocurrency.
Investors often consider the circulating supply when making investment decisions. The ratio of circulating supply to the total supply can impact evaluations of future price appreciation or volatility. For example, in deflationary cryptocurrencies, where the circulating supply decreases over time, the value of each token may increase. In contrast, inflationary cryptocurrencies gradually increase their circulating supply, which can affect token prices and overall market dynamics.
Role of Circulating Supply in Investor Decisions
Investor sentiment is influenced by the circulating supply of a cryptocurrency. It helps investors gauge the potential growth and stability of a cryptocurrency. The circulating supply can provide insights into the availability and scarcity of tokens, which are crucial factors in determining market value.
When evaluating cryptocurrencies, market cap calculators are used to assess the relative size of different cryptocurrencies by calculating market capitalization. This metric helps investors compare and analyze the potential value and growth prospects of various cryptocurrencies based on their circulating supply.
It is essential to consider the circulating supply when evaluating a cryptocurrency project. If a project has less than 50% of its supply in circulation, there is a risk of dilution and potential price drop. Therefore, assessing the circulating supply is crucial for making informed investment decisions and managing risk.
Overall, circulating supply plays a significant role in the crypto market. It impacts the market value, liquidity, and investor sentiment. Understanding and analyzing the circulating supply of a cryptocurrency is essential for investors to navigate the market and make informed decisions.
Examples of Circulating Supply Impact on Market Value
The impact of circulating supply on market value can be observed through examples. Cryptocurrencies with a limited circulating supply, such as Bitcoin, often experience higher demand and increased market value due to scarcity. With a circulating supply of 19 million out of a total supply of 21 million, Bitcoin has around 90% of its total supply already in circulation. This scarcity has contributed to Bitcoin’s significant market value and the high demand from investors.
In contrast, cryptocurrencies with a large circulating supply may face challenges in maintaining a high market value unless they offer unique features or use cases. For example, Ethereum has a circulating supply of 121 million out of a total supply of 2^256, illustrating a higher percentage compared to Bitcoin but with different market dynamics due to its smart contract capabilities.
Another example is Shiba Inu, which has a circulating supply of 550 billion and a market capitalization of $6 billion. Despite having a relatively low individual coin price, its high circulating supply has still influenced its market value. This highlights how circulating supply can impact market value regardless of the individual coin price.
| Cryptocurrency | Circulating Supply | Market Cap |
|---|---|---|
| Shiba Inu | 550 billion | $6 billion |
| Chainlink | 470 million | $3 billion |
| Dogecoin | 132 billion | $9 billion |
Furthermore, the relationship between circulating supply, price, and market capitalization can be observed in cryptocurrencies like Chainlink and Dogecoin. Chainlink has a circulating supply of 470 million and a price of $6.4, resulting in a market cap of approximately $3 billion. Similarly, Dogecoin’s circulating supply stands at 132 billion with a price of $0.07, resulting in a market cap of about $9 billion. These examples exemplify how circulating supply influences market cap alongside price.
On the other end of the spectrum, coins like Litecoin demonstrate that when the circulating supply and max supply are equal, the price fluctuates based on market conditions without drastic changes. Litecoin has a circulating supply and max supply of 84 million, showcasing how market dynamics can vary based on circulating supply and scarcity.
The examples above highlight the influence of circulating supply on market value. Scarcity and the ratio of circulating to total supply play a crucial role in assessing a cryptocurrency’s perceived value, attracting demand, and ultimately impacting its market capitalization.
Future Projection of Circulating Supply
The future projection of circulating supply in the crypto market is a topic of great interest for investors and enthusiasts alike. It plays a crucial role in understanding the potential dynamics and value of a cryptocurrency.
One of the key factors that can impact the future circulating supply is the coin burn events. Coin burn events involve the intentional destruction of a certain number of tokens, reducing the circulating supply. This strategy is often employed by token issuers to increase scarcity and potentially drive up the price of the remaining tokens. However, it is important to note that not all cryptocurrencies have coin burn mechanisms in place.
Another factor that affects circulating supply is token issuance. When new tokens are introduced into the market, the circulating supply increases. This can happen through various means such as initial coin offerings (ICOs), token sales, or airdrops. The rate of token issuance can vary depending on the project’s roadmap and strategy.
Furthermore, the development and adoption of new cryptocurrencies or blockchain protocols can also impact the future circulating supply. As new projects emerge and gain traction, they bring in their own tokens into the market, potentially increasing the overall circulating supply.
It is important for investors to consider these factors when making long-term projections about the circulating supply of a cryptocurrency. By analyzing the tokenomics, roadmap, and burn policies of a project, investors can gain insights into how the circulating supply may change over time and how it could potentially impact the price and market dynamics.
| Cryptocurrency | Circulating Supply |
|---|---|
| Milady Meme Coin ($LADYS) | 734.4 Trillion |
| Shiba Inu ($SHIB) | 589.3 Trillion |
| Pepe ($PEPE) | 420.7 Trillion |
| Coq Inu ($COQ) | 69.4 Trillion |
| Bonk ($BONK) | 66.2 Trillion |
| Floki ($FLOKI) | 9.7 Trillion |
| 1000SATS ($SATS) | Undisclosed |
| Wen ($WEN) | 727.7 Billion |
| Dogecoin ($DOGE) | 144.1 Billion |
| Tether USDt ($USDT) | 110.5 Billion |
The table above showcases the circulating supply of various cryptocurrencies in the market. It is worth noting that the circulating supply can have a significant impact on a cryptocurrency’s value. Factors such as scarcity, demand, and market capitalization are influenced by the circulating supply, making it an essential metric to consider when analyzing the potential future performance of a cryptocurrency.
Impact of Circulating Supply on Investor Decisions
The circulating supply of a cryptocurrency plays a crucial role in shaping investor decisions and investment strategies. As investors navigate the dynamic crypto market, they consider various factors, including the circulating supply, to assess the potential impact on market trends and make informed investment choices.
When evaluating a cryptocurrency, understanding its circulating supply helps investors determine the relative market value and potential growth prospects. Generally, a larger circulating supply indicates a more established and widely adopted cryptocurrency, leading to a higher market capitalization. This suggests that the cryptocurrency has gained a significant level of trust and adoption, which may influence investor decisions.
On the other hand, a smaller circulating supply can indicate higher growth potential and increased volatility. When there are fewer tokens available in circulation, any increase in demand can have a more significant impact on the price, potentially leading to higher price volatility. Investors seeking potential opportunities for significant growth may find cryptocurrencies with smaller circulating supplies appealing.
Price volatility is directly influenced by circulating supply, with smaller supplies often experiencing more significant fluctuations. This volatility can present both risks and opportunities for investors. While it can lead to rapid price appreciation, it also brings a higher level of risk and uncertainty. Therefore, investors must carefully assess the potential impact of circulating supply on price volatility before making their investment decisions.
Liquidity in the cryptocurrency market is higher with larger circulating supplies as more tokens are available for trading. This allows investors to buy and sell tokens more easily, ensuring smoother market transactions. The availability of a liquid market can influence investor decisions, as it provides opportunities for entering and exiting positions more efficiently.
A notable example of circulating supply impact can be observed in the case of Bitcoin (BTC) and Ethereum (ETH). Bitcoin has a capped total supply of 21 million coins, which creates scarcity and reinforces its value proposition. Conversely, Ethereum does not have a fixed supply cap but has introduced coin burning mechanisms to reduce its supply and manage inflationary pressures.
| Key Points | Impact |
|---|---|
| Larger circulating supply | Indicates higher market capitalization, implying a more established and widely adopted cryptocurrency |
| Smaller circulating supply | Suggests higher growth potential and increased volatility |
| Price volatility | Influenced by circulating supply, with smaller supplies often experiencing more significant fluctuations |
| Liquidity | Higher with larger circulating supplies as more tokens are available for trading |
| Bitcoin (BTC) | Capped total supply of 21 million coins |
| Ethereum (ETH) | No fixed supply cap but introduced coin burning to manage supply |
Role of Circulating Supply in Crypto Projects
In the world of cryptocurrency, circulating supply plays a crucial role in shaping the dynamics of crypto projects. It serves as a key factor in tokenomics and supply management strategies, influencing market value, liquidity, and investor perception.
Circulating supply refers to the total number of tokens or coins actively circulating in the market and available for trading. It is a vital metric that helps assess the level of token scarcity or abundance, guiding market participants in evaluating investment opportunities and making informed decisions.
Crypto projects strategically determine their initial circulating supply based on various factors such as project goals, token distribution strategies, and long-term vision. The role of circulating supply in crypto projects is to achieve a balance between demand, value, and market stability.
By carefully managing the circulating supply, crypto projects can ensure a sustainable token ecosystem. This involves implementing mechanisms to regulate the growth or decrease of circulating supply, aligning with the project’s tokenomics goals.
One notable example is Bitcoin (BTC), which has a maximum supply capped at 21 million coins. This scarcity contributes to its value and status as a store of value in the crypto market.
On the other hand, Dogecoin (DOGE) started with a supply limit of 100 billion coins and currently has over 144 billion tokens in circulation as of May 6. The continuously increasing circulating supply could potentially impact its market value and volatility.
Ethereum (ETH) takes a different approach, as its maximum supply is not capped. This allows for the creation of new Ethereum tokens indefinitely, shaping its supply dynamics.
To provide transparency and investor confidence, many cryptocurrency projects disclose details about their circulating supply. Understanding the proportion of tokens available for trading allows investors to gauge market liquidity and assess potential risks and rewards.
Changes in circulating supply occur due to various factors, including token burning, minting, and alterations in token allocation. Coin burning events involve intentionally destroying a portion of the total supply, reducing the overall token supply and potentially increasing value.
When calculating market capitalization, the focus is generally on circulating supply. Market capitalization is derived by multiplying the current market price of tokens by their circulating supply. This provides a more accurate representation of market conditions and cryptocurrency liquidity.
Crypto projects carefully manage their circulating supply to maintain price stability, market liquidity, and token value. A smaller circulating supply may make a cryptocurrency more susceptible to price volatility, while a larger circulating supply often results in higher liquidity due to the availability of more tokens for trading.
As the cryptocurrency market continues to evolve, assessing and comparing the circulating supply of different cryptocurrencies can offer valuable insights to investors. It allows them to gauge the level of token scarcity, potential price volatility, and liquidity, helping make informed investment decisions.
The role of circulating supply in crypto projects cannot be understated. It serves as a vital component in understanding token distribution, market dynamics, and the overall success of a project.
Conclusion
In conclusion, circulating supply plays a crucial role in the crypto market and has a significant impact on the market value of cryptocurrencies. It is a dynamic metric that can fluctuate over time due to various factors such as mining, minting, and burning of tokens.
Understanding the circulating supply allows investors to assess the liquidity and overall market value of a cryptocurrency. By evaluating the circulating supply, investors can determine the potential growth and value of an asset, with lower circulating supply indicating scarcity and the potential for driving up prices over time.
Factors influencing circulating supply include mining, minting in proof-of-stake mechanisms, and coin burning events. Coin burning, in particular, can reduce the circulating supply, creating scarcity and potentially boosting the value of remaining coins.
Ultimately, investors should consider circulating supply alongside other fundamental and market factors when making investment decisions in the crypto market. Evaluating the circulating supply provides a valuable insight into the potential market value and scarcity of a cryptocurrency, assisting investors in making informed decisions.