How is circulating supply defined in the world of digital currencies?

3 answers

• Tomás BrogueiraMar 30, 2021 · 5 years ago
  Circulating supply in the world of digital currencies refers to the total number of coins or tokens that are currently in circulation and available for trading. It is determined by subtracting the coins that are locked or held by the project team, reserved for future use, or not yet released from the total supply. This metric is important for investors and traders as it helps them understand the liquidity and market value of a particular cryptocurrency. The circulating supply can affect the price and market dynamics of a digital currency, as a higher circulating supply may indicate a larger potential market cap and lower price volatility.
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• Ditsaphong Na SongkhlaApr 09, 2021 · 5 years ago
  When it comes to digital currencies, circulating supply is the number of coins or tokens that are actively circulating in the market. It excludes coins that are locked, reserved, or not yet released. The circulating supply is determined by the project team and can change over time as new coins are minted or released into circulation. It is an important metric for investors and traders to consider when evaluating the potential value and growth of a cryptocurrency. A higher circulating supply may indicate a larger potential market cap, but it doesn't necessarily mean that the price will be lower. Other factors such as demand, utility, and market sentiment also play a role in determining the price of a digital currency.
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• Prasenjit DasAug 02, 2023 · 3 years ago
  In the world of digital currencies, circulating supply is the total number of coins or tokens that are actively being traded in the market. It is an important metric that investors and traders look at to assess the liquidity and market value of a cryptocurrency. The circulating supply is determined by the project team and can vary depending on factors such as token distribution, token burns, and token releases. It is worth noting that the circulating supply is different from the total supply, which includes all coins or tokens that have been created. By having a clear understanding of the circulating supply, investors can make more informed decisions about buying, selling, or holding a particular digital currency.
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