Cryptocurrency Q&A
Is circulating supply the same as max supply?
Is circulating supply the same as max supply?
Giulia
Wed Aug 28 2024
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6 answers
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Hello there, I'm curious about something related to cryptocurrency. Could you please clarify if the circulating supply of a coin is the same as its maximum supply? I've heard these terms used interchangeably, but I'm not entirely sure if they mean the same thing. Could you provide a brief explanation of the difference between the two, if any? I'd really appreciate it!
6 answers
IncheonBeauty
Fri Aug 30 2024
The cryptocurrency market is a complex and dynamic ecosystem where various factors contribute to its overall health and growth. Among these factors, the supply of coins plays a crucial role in determining their value and market dynamics.
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BusanBeautyBloom
Fri Aug 30 2024
The circulating supply refers to the total number of coins that are currently in circulation and available for trading. This includes coins that are being actively traded on exchanges, as well as those that are held by individuals or institutions.
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Margherita
Fri Aug 30 2024
In addition to the circulating supply, there are also coins that are kept in escrow. Escrow refers to a process where a third party holds onto assets until certain conditions are met. In the context of cryptocurrency, this could mean that a certain number of coins are being held in reserve or for a specific purpose.
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KimonoElegance
Fri Aug 30 2024
Together, the circulating supply and the coins held in escrow make up the entire supply of a particular cryptocurrency. This total supply is an important metric for investors and traders, as it provides a rough estimate of the total number of coins that are available in the market.
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BlockchainBaron
Thu Aug 29 2024
On the other hand, the maximum supply is a different metric that measures the total number of coins that will ever exist. This includes not only the coins that are currently in circulation or held in escrow, but also those that will be produced or made accessible in the future.
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