*Circulating Supply Alert! 🚨*
Did you know that an increase in circulating supply can impact a coin's value? 🤔 Here's what you need to know:
*Increased Supply = Decreased Value? 📉*
- Dilution of value: More coins in circulation can decrease each coin's value.
- Increased selling pressure: More coins available can lead to more selling, putting downward pressure on price.
- Reduced scarcity: Increased supply reduces the coin's scarcity, making it less valuable.
*But, It's Not That Simple... 🤓*
- Demand: Strong demand can offset increased supply.
- Use case: A strong use case and adoption can maintain value.
- Market sentiment: Investor confidence and market sentiment play a role.