Crypto circulating supply is a necessary factor to consider when making investment decisions.
That’s true because the volume of supply hides a lot of useful hints which can help the investor to avoid traps and eventually make profit.
But what exactly is it?
Crypto circulating supply is the total number of coins that are available and circulating in the market right now.
Eventually, this metric hides a lot of information that traders and investors have to consider but is not the only one.
Circulating supply is just one more part that forms an investing decision.
Before take any action, you are recommended to study and understand at least some other of the primary cryptocurrency metrics which are the following:
What does circulating supply mean in Crypto?
When a company creates a particular amount of coins or tokens, only a part of them becomes publicly available for circulation.
Consequently, crypto circulation supply refers to the number of the tokens or coins available for circulation in public.
For example, the circulating supply of Cardano (ADA) is 33,71 billions but has a total supply of 45 billions.
As already mentioned, cryptocurrency circulating supply can help investors form their decisions.
Let’s see an example of what circulation supply actually can tell us:
Ripple (XRP) is among the most promising cryptocurrencies that exist right now.
The current price of XRP at this moment is around 1 dollar, the circulating supply is 48,12 billions and the market cap around 48 billions.
So, in order for the XRP’s price to rise 10 times basically we need to see a rise of the market cap to 480 billion which is very difficult to happen cause the whole crypto market volume is 107 billions!
On the other hand, Avalanche (AVAX) has a price around 85 dollars, circulating supply at 267 millions and market cap around 23 billions of dollars.
Accordingly, in order to see AVAX’s price rise 10 times more we will expect to see 2,67 billions market cap, which is actually quite possible.
To sum up, what is happening here is that the circulating supply of XRP is so large that it basically doesn’t give XRP any chance to rise so much more.
Of course I am not saying that XRP’s price will never rise to that level, but I at this point is an amazing example of how investors should use the circulation supply.
What happens when circulating supply reaches max supply?
As far as crypto concerned, there are three types of supply:
- Circulating supply – The amount of tokens that are circulating in public right now
- Total supply – The amount of coins that have already been created minus the coins that have been burned
- Max supply – The amount of coins that will ever exist in the lifetime of the cryptocurrency
So basically, when circulating supply reaches max supply we can draw the following conclusions:
- There are no more new coins to expect. That could mean many things like the fact that there is no need to mine any new coin anymore, or the fact that there is no chance for inflation since no one can print any new money to provoke inflation
- Due to the fact that crypto circulating supply equals to max supply that means that no tokens have ever been burned
How do I know my crypto circulating supply?
Finding the crypto circulating supply is a very simple process since you can find her in a lot of different ways.
There are a plethora of websites and applications which you can run into.
Probably the most popular and reliable website you can visit is the Coin market cap.
Through this page you can absorb very helpful information about cryptocurrencies.
You can find a list with the many thousands of cryptos and you can see for each one of them the price, the market cap, the trading volume and the circulating supply.
Which Crypto has the most circulating supply?
The digital coin that has the biggest circulating supply is the BitTorrent (BTT) the number of which is just gigantic:
Currently there are 923,767,696,429,000 BTTs circulating in the market and in public hands.
The max supply for it is yet unknown and its price is around $0.000002.
Some of the runners up in terms of crypto circulating supply are:
- The Shiba Inu token (SHIB) with circulating supply at 549,063,278,876,302 SHIB and price $0.000025.
- The ECash (XEC), which is the cryptocurrency that is designed to be used as electric cash, with circulating supply at 19,013,985,923,313 and price at $0.00009.
And the list goes on.
One more thing I would like to mention is the fact that some cryptocurrencies have very low prices because of the large circulating supply but this doesn’t mean that they are not popular.
As a result it is a big mistake to only see the price of a crypto and form an opinion about it, since there are so many more factors to consider.
The bottom line
Crypto circulating supply is an important factor to consider if you want to have a complete image of any cryptocurrency.
It is recommended to search different kinds of cryptocurrencies and observe the primary metrics (market cap, liquidity, exchange volume and circulation supply) of each one and notice how their combinations impact on cryptocurrency value.
Thumbnail photo source: Quote Inspector.
