The supply amounts in cryptocurrencies indicate how much a cryptocurrency can be produced and how much of the produced cryptocurrencies are in circulation in the market. Supply quantities are an important factor affecting the value of cryptocurrencies. In this article, you can find the answers to the questions of what is the circulating supply and what is the total supply.
What is the Difference Between Circulating Supply and Total Supply in Cryptocurrencies?
In cryptocurrencies, circulating supply and total supply are two different concepts. The circulating supply refers to the cryptocurrencies traded in the market and open for users to trade. Total supply refers to the sum of the circulating and not yet released amount of a cryptocurrency.
What is the Total Supply in Cryptocurrencies?
Total supply refers to the sum of the circulating supply of a cryptocurrency and the amount produced but not released. Total supply refers to the total number of cryptocurrencies currently in existence, but not all cryptocurrencies in the total supply may be in circulation. These amounts, which are not in circulation, can be locked or offered to investors by private sale. These non-circulating amounts do not affect the value of the cryptocurrency.
What is the Circulating Supply in Cryptocurrencies?
The circulating supply refers to the circulating amount of a cryptocurrency. The circulating supply is the amount in circulation on cryptocurrency trading platforms and in the hands of users.
Effect of Circulating Supply on Cryptocurrency Value
Supply-demand balance is an important factor influencing price movements in cryptocurrencies. When the circulating supply of a cryptocurrency is added to the total supply, the value of the cryptocurrency may decrease. In terms of supply-demand relationship, as the amount of cryptocurrency in the market increases, the value of the cryptocurrency may be negatively affected.