When you look at cryptocurrency tables, there are a lot of numbers that don’t make sense. What is circulating supply cryptocurrency? What is market cap? Volume? What are these values?
We’re here to help you understand these numbers. These digits represent how your chosen crypto assets are performing in the market. Learn the difference between circulating supply and total supply. What is the market cap? What volume is the chart talking about? Read on and find out!
The first number you have to remember is, of course, the price of the crypto you want to obtain or trade with. This is the current spot price of the cryptocurrency in brokerage accounts. Prices change due to the volatility of the crypto market.
Circulating Supply vs. Maximum Supply
The next number to check is the circulating supply. The circulating supply is the number of crypto assets currently circulating in the market. Circulating supply is a useful metric in measuring cryptocurrencies’ market capitalization rather than using the total supply. We’ll get into that later.
Now that you know what is circulating supply cryptocurrency, maximum supply will be our next topic. Most crypto assets have a maximum supply. This is the maximum amount of coins that will exist in the cryptocurrency’s existence. Crypto assets like Bitcoin have not yet reached their maximum supply. The current number of Bitcoins circulating right now is approximately 88 percent of the maximum supply of bitcoin.
There is also another measurement called the total supply. The total supply is the total number of cryptocurrencies, including those burned away and lost in transactions. Some cryptocurrencies have no way to track this metric.
Some people say that the Bitcoin circulating supply is not really at 18+ million because there are many lost addresses of bitcoins from the early days of bitcoin. The estimate is that up to 4 million bitcoins are now lost forever because their addresses might have been lost due to hard drive problems or the private address key for it was forgotten, so there is no other way to access it.
Other crypto assets like Ethereum have no maximum supply. The circulating supply is also its total supply. Having no maximum supply lessens the impact of the cryptocurrency.
For example, Ethereum has no maximum supply, and it has reached 100-million units circulating. The Ethereum community is now being skeptical about the cryptocurrency moving on forward because of inflation. The value of Ethereum will not shoot up like how it happened with Bitcoin because of the market cap that Bitcoin had.
Even the Ethereum co-founder thinks that setting a maximum cap will help Ether in the long run. He proposes setting the limit to 120 million units. If his proposal is accepted after Ethereum reached the 120 million unit limit, he also suggested the value of 144 million units, double the amount of the Ethereum’s genesis block. Ethereum’s genesis block was created with 72 million units when it was launched back in 2015.
How Does Circulating Supply Affect Cryptocurrency
After understanding what is circulating supply cryptocurrency, let us learn how it affects the crypto coins’ value. Circulating supply has a huge impact on cryptocurrencies. The number of circulating supply of a crypto asset helps determine the price of that cryptocurrency. By measuring the supply and demand of the cryptocurrency, its price can rise up or go down.
To get the value of the market cap, you have to get what is circulating supply cryptocurrency value first. The computation for the market cap is the price of the cryptocurrency multiplied by the circulating supply.
Market cap shows you the current value of the crypto assets in terms of your local currency. This helps in visualizing how immense the potential of the crypto asset can be.
Bitcoin, for example, has a price of $23,383.2 as of writing. The current number of circulating supply of Bitcoin is 18,579,975. Computing this will give you $433,471,716,473. Meaning the total value of all bitcoin is now 433 Billion US Dollars.
This shows how immense the current standing of Bitcoin is. Its price is still climbing, considering that the process becomes more and more difficult every time a new Bitcoin is mined. This gives people who invested in Bitcoin the faith that bitcoin will reach astronomical heights. Learn more about circulating supply here!
There is no denying that the circulating supply has an enormous impact in determining the progression of cryptocurrencies. It affects a lot of the things that happen in the crypto world. Now that we know what is circulating supply cryptocurrency tables will never feel difficult again. Hopefully, this will help you in your crypto investment portfolios and in selecting where to invest.