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Types of supply (Supply) in digital currencies
In cryptocurrencies, the supply of a currency is considered very sensitive because it affects the price, market value, and scarcity. There are 3 main types you need to understand:
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1. Circulating Supply (
Definition:
The actual number of cryptocurrencies currently in the market and being traded among people.
This number is used to calculate Market Cap.
It may increase over time ) if the currency has a continuous issuance system (.
Examples:
Bitcoin: ~19.6 million BTC currently in circulation.
Dogecoin: More than 140 billion DOGE.
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2. Total Supply )Total Supply Currently (
Definition:
The number of currencies that have been issued so far ), whether circulating, reserved, or unavailable for the market (.
The currencies included in smart wallets ), like the team's vaults, or staking Staking (, even if they are not traded.
Total Supply = circulating coins + reserved coins
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3. Max Supply )the maximum supply(
Definition:
The maximum number of coins that will be finally created, according to the currency code or smart contract.
Some cryptocurrencies have a clear Max Supply like Bitcoin ).
Some currencies do not have a Max Supply at all ( like Ethereum – but it changed later due to the burning mechanism ).
()#Crypto Market Rebounds