Total Supply Definition
Total supply is the complete quantity of a particular cryptocurrency token that is currently in circulation and accessible to the public or that will ever be produced. It is a measure of the volume of a cryptocurrency that has been issued and is theoretically available for trading, while also taking into consideration any actions that might deter the selling of the currency.
Total Supply Key Points
- The total supply measures the quantity of a cryptocurrency token that exists in the market.
- This supply includes the tokens in circulation and those still yet to be mined or issued.
- The limit of the total supply of a crypto-token is preset by the cryptocurrency’s protocol.
What is Total Supply?
Total supply is a term used to describe the total amount of cryptocurrency coins in the entire market. It includes both circulating supply, which represents the coins that are available and circulating in the market, and non-circulating supply, which includes coins that have been locked, reserved, or are not yet released into the market.
Why is Total Supply important?
The total supply of a particular cryptocurrency is a fundamental factor in its value. It impacts the price of each token and the market capitalization of the coin. Understanding the total supply helps investors evaluate the value of the cryptocurrency and make investment decisions.
When is Total Supply used?
Total supply data is used in several contexts within the cryptocurrency world. It is closely monitored by investors and traders who use it to evaluate market trends and make decisions. It’s also used by exchanges and market data aggregators to provide accurate market data across the industry.
Who uses Total Supply?
The concept of total supply is important for various stakeholders within the crypto landscape, including traders, investors, market analysts, and developers. Even regulators may use the total supply to understand the scope and size of a particular cryptocurrency market.
How is Total Supply determined?
The total supply of a cryptocurrency is predetermined in the coin’s codebase by its developer or by some algorithmic function as part of the coin’s underlying blockchain protocol. The initial amount of total supply may evolve over time as tokens are added or removed from circulation through various processes.
Where can Total Supply data be found?
Data about a cryptocurrency’s total supply can usually be found on the project’s website, whitepaper, or on various crypto-asset market analysis sites. Total supply data is usually publicly accessible to promote transparency within the cryptocurrency market.
