#SpotVSFuturesStrategy
Circulating Supply is the number of digital currencies that have currently been issued and are available for trading in the market. This quantity represents the currencies that can be bought, sold, or traded among investors at any time.
Why is Circulating Supply important?
1. Determining Market Value:
• Used in calculating Market Cap:
2. Its effect on price:
• The lower the Circulating Supply, the higher the likelihood of price increases if demand is high.
• Currencies with large supply are generally 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:
• Currencies currently available in the market.
2. Max Supply:
• The maximum number of currencies that can be issued according to the project's rules.