The total supply of a cryptocurrency refers to the total number of coins that are currently in existence. The total supply can also increase or decrease, depending on several factors. So the formula to calculate market cap stands as: Market Cap = Price (X times) Circulating Supply. Tips welcome! As a newbie you may get confused so we decided to make separate post explaining the difference between Circulating Supply, Total Supply and Max Supply. On the site, you get an overview of how popular a crypto token is. The answer is simple. Bitcoin has controlled supply and its block reward decreases every 4 years. It is a combination of both the circulating supply and the coins that are locked up in escrow. Yield. Circulating Supply: 16,830,812 Here well explain what circulating supply, total supply and max supply in a Cryptocurrency is. The circulating supply can be calculated by dividing the market cap by the coin price. From trading perspective that is if you are looking for coins with exponential growth then you must consider market cap that is low with higher trade volume. ICO News Given the speculative nature of a lot of coins in this market, the supply of a coin can greatly affect its demand. For example, lets say we have a coin with a 1-million-coin supply and we sell you one for $5. As a result, those coins will not be part of the circulating supply.. Given that traditional fiat currencies are inflationary while most of the crypto projects are deflationary, this means that buyers should derive more benefits from their holdings if they have low time preference. In the conventional markets, 99% of investors use a broker or professional trader to manage their portfolios and risk profiles. Consider Bitcoin price now which is $11,887 and its market cap is $200,069,545,325. Trading is a profession, just like a doctor or an electrician. Total Supply: The amount of coins that is already in circulation + new mined coins which are not in the market is the Total supply. 2023 CoinPricePredict All Rights Reserved. Subscribe to our newsletter to get the latest crypto news in your inbox. This number can go up or down, if more people stake then circulating supply goes down again. Subscribing to CoinBeat may unlock some key analysis to those other factors and give you the edge you need to make profits in crypto. For instance, as new Bitcoin gets mined, the number of total coins will increase. Not only does a company with a crypto token want to increase the value of their company, but they also want to increase the value of their token. Because the circulating supply is less. Circulating supply is the amount of coins or tokens thats been mined or generated. Circulating Supply, Total Supply and Max Supply. Hey folks, looking for some input from someone with a little more knowledge of circulating supply. As we all know that most of the crypto coins have a limited number of available coins which are circulated in the market. For instance, if a crypto token has a circulating supply of 100 coins and the current market price of the token is $5 each. The maximum supply of a cryptocurrency refers to the maximum number of coins or tokens that will be ever created. Effect on BTC cryptocurrency. Market Cap: $200,069,545,325 One reason is there are so many Bitcoins that are lost which are of no use. Bitcoin is the very first crypto currency launched in 2009. If we were to sell you back 0.25 of that coin for $5, then the market cap is now calculated at $20 million. Why is thecirculating supplyused in determining the market capitalization instead of thetotal supply? If we want to put money in cryptos, especially for the long term, you must pay attention and investigate more about all the points I covered in this article. Since the market cap of a crypto token is determined by the current price multiplied by the circulating supply. Prophecy has an in-place contracting supply model of Burning to stabilize demand. How to mine Kaspa GPU mining KAS kHeavyHash (Windows / Hive OS), Tutorial: How to setup, configure and use XMRig? However, it usually does not include the number in crypto wallets because they are not being used. Live Marketcap Prices Values are taken by the time of writing this article. In the cryptocurrency sector, supply and demand work differently since some crypto assets such as bitcoin have a fixed supply (of 21 million) while others like solana have an unlimited supply. Such a gradual increase is related to the process of mining that generates new coins every 10 minutes, on average. Unfortunately, in the cryptocurrency sector, 99% of people enter the sector thinking profits are guaranteed and that is far from the truth. Other factors like the potential market of the tech, the credibility of the management and development team, marketability and competition are a few others. While we do our due diligence to vet and ensure only the top-quality writers, analysts and projects get on our site, we also believe that no one should invest without first consulting a professional. What Are the Reasons to Use Temporary Storage Buildings? By the way what is the difference between total and max supply? As mentioned earlier, many newbie traders get confused between total supply and circulating supply. @AgareumAGR, 2019 was undoubtedly one for the books, but we have no doubt that 2020 will be even bigger. And the circulating supply will reach up to 21 million. Max supply is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency. DigiByte Tip Jar: D5j9xu8HWzeA5jvMY2LmxnLJTFsbakcJC4 World Crypto Con in Las Vegas: https://bit.ly/2Q1JG0U Join the BitSquad on Telegram: https://bit.l. //=a.length+e.length&&(a+=e)}b.i&&(e="&rd="+encodeURIComponent(JSON.stringify(B())),131072>=a.length+e.length&&(a+=e),c=!0);C=a;if(c){d=b.h;b=b.j;var f;if(window.XMLHttpRequest)f=new XMLHttpRequest;else if(window.ActiveXObject)try{f=new ActiveXObject("Msxml2.XMLHTTP")}catch(r){try{f=new ActiveXObject("Microsoft.XMLHTTP")}catch(D){}}f&&(f.open("POST",d+(-1==d.indexOf("?")?"? The price of crypto currencies are driven by two main factors such as supply and Demand. This incentivizes a company with a token to create value within its token ecosystem by offering benefits to holders. The following information sums up the factors that affect the price of digital currencies and can reflect the future. If the volume is more then it means then the coin is active and more people started to show interest in buying and selling. Circulating Supply: 97,257,940 One of the reasons behind this is that, just like gold, they are in limited supply, as there is a cap on mining any type of cryptocurrency. Once the maximum supply is exhausted, no new coins or tokens will be produced or mined.