How does the circulating supply of BNB impact its price?

1 answers

• Ellegaard FaberMay 09, 2024 · 2 years ago
  The circulating supply of BNB is a crucial factor in determining its price. When the circulating supply increases, it can put downward pressure on the price as there are more coins available for trading. Conversely, a decrease in the circulating supply can create scarcity and drive up the price. BNB's circulating supply can be influenced by token burns, where a portion of the coins are permanently removed from circulation. Token unlocks and distributions can also impact the circulating supply. It's worth noting that the circulating supply is not the same as the total supply, which includes locked or reserved coins. Therefore, it's important to consider both the circulating supply and the total supply when analyzing the price dynamics of BNB.
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