Total Supply Definition
Total Supply refers to the total amount of a specific cryptocurrency that currently exists or will ever exist. This includes coins that have been mined (or issued) but are not currently in circulation because they are held by the creators or are locked in smart contracts. Total supply is a crucial aspect of a cryptocurrency’s economic model, as it can influence the coin’s value and scarcity.
Total Supply Key Points
- Total Supply is the total number of coins or tokens that are in existence, including those not in circulation.
- The total supply of a cryptocurrency can be fixed or variable, depending on the coin’s economic model.
- Knowing the total supply can help investors understand a coin’s scarcity and potential value.
- Some coins have a large proportion of their total supply locked away, which can affect the coin’s liquidity and price.
What is Total Supply?
Total Supply is a term used in the cryptocurrency market to refer to the total number of coins or tokens that have been created for a particular cryptocurrency. This includes all coins or tokens that have been mined or issued, regardless of whether they are currently in circulation.
Why is Total Supply important?
The total supply of a cryptocurrency is a critical factor in its economic model and can significantly influence its market value. A coin with a large total supply may have a lower individual price, while a coin with a smaller total supply may be more valuable due to its scarcity. Additionally, the total supply can affect a coin’s liquidity, as a large proportion of coins locked away or held by the creators can reduce the number of coins available for trading.
When is Total Supply determined?
The total supply of a cryptocurrency is typically determined at its creation or launch. Some cryptocurrencies have a fixed total supply, meaning that no more coins will ever be created. Others have a variable total supply, with new coins being created through processes like mining or staking.
Where can you find the Total Supply?
The total supply of a cryptocurrency can usually be found on the coin’s official website or on cryptocurrency market data websites. These sources provide information about the total supply, as well as other important data like the current circulating supply and the maximum supply.
How is Total Supply calculated?
The total supply of a cryptocurrency is calculated by adding all the coins that have been mined or issued. This includes coins that are in circulation, as well as those that are locked in smart contracts or held by the creators. Some cryptocurrencies also include coins that have been lost or burned (permanently removed from circulation) in their total supply.
