Ilaria
Tue Jul 30 2024
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5 answers
808
What happens when circulating supply meets max supply?
So, let's delve into the question: What really occurs when the circulating supply of a cryptocurrency meets its maximum supply? Now, this is an intriguing concept, especially in the realm of decentralized finance. The maximum supply, also known as the hard cap, is the predetermined upper limit set by the creators of the cryptocurrency. It's a finite number that can't be exceeded. As for the circulating supply, it refers to the total amount of coins or tokens that are currently in circulation and available for trading or other transactions. When these two figures meet, it essentially means that no more of that particular cryptocurrency will be created or mined. But what does this mean for investors, traders, and the overall market? Does it lead to scarcity, driving up prices? Or does it stabilize the market, reducing volatility? It's a complex issue with various factors at play, including demand, adoption, and overall market sentiment. So, let's break it down: how might the intersection of circulating and maximum supply impact the cryptocurrency's future? And what should investors and traders consider when making decisions in this context?
