#AltcoinBreakout
Circulating Supply is the number of digital currencies that have been issued currently and are available for trading in the market. This quantity represents the coins that can be bought, sold, or traded among investors at any time.
Why is Circulating Supply important?
1. Market Cap Determination:
• Used in calculating Market Cap:
2. Its Impact on Price:
• The lower the Circulating Supply, the higher the likelihood of price increases if demand is high.
• Coins with a large supply are usually less expensive.
3. Economic Valuation of the Currency:
• Helps understand how the available supply affects the value of the currency.
The difference between Circulating Supply and other supplies:
1. Circulating Supply:
• Coins currently available in the market.
2. Max Supply:
• The maximum number of coins that can be issued according to the project's rules.