What is the difference between total supply and circulating supply in the context of cryptocurrencies?

1 answers

• Mar 16, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that the difference between total supply and circulating supply is a crucial factor in determining the value and market dynamics of a cryptocurrency. Total supply refers to the maximum number of coins or tokens that will ever exist, while circulating supply represents the number of coins or tokens that are currently in circulation. The circulating supply is what investors and traders focus on because it directly affects the supply-demand dynamics and liquidity of a cryptocurrency. A higher circulating supply can potentially lead to lower prices and decreased demand, while a lower circulating supply can create scarcity and drive up the price. It's important to consider both total supply and circulating supply when evaluating the investment potential of a cryptocurrency.
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