Circulating supply matters to you? | Bitcointalksearch.org

@sriyan

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Quote from: StormHawk on March 25, 2023, 12:34:57 PM

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

I will take a few examples of projects to discuss.

Eg :

1. Aptos: They are given 130M(Initial circulation supply) at the TGE(13%)
2. Sei: They are given 1800M(Initial circulation supply) at the TGE (18%)

When you compare the above 02 projects, Aptos has the full potential to grow. Because Aptos is given a lower percentage for the circulation supply. Sei's circulation supply is higher than the aptos. But when you compare with the use cases of the 02 projects, Sei is faster than aptos. Sei is the fastest layer 1 project. But if you compare sei and Aptos prices, Aptos price is higher than the sei.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: Abiky on August 20, 2023, 12:51:11 PM

Consider how Dogecoin is still worth something even though there are lots of coins in circulation. New units will be created every year, leaving us with an endless supply of DOGE. Coins with a limited supply are more likely to rise in price within a short amount of time. I'm talking about coins like Bitcoin, Litecoin, Diamond (DMD), and Dash. Especially Bitcoin which is the most popular cryptocurrency in the world. Who knows how the market will change in the long run as new players join the scene? Just my thoughts Grin

I like your optimism about the altcoins.

However from my experience the altcoins are mainly capitalised during the cycles when the hype is good and it drives an inorganic demand. On the other hand bitcoin has its own organic demand over time. Hence I prefer the second always. But hopeful people are free to invest in the former. The only problem is that they need to be monitored and the social media kept track of, who knows which celeb is going to talk shit or gold about a certain coin.

Their circulating supply is often raises eyebrows because of a lot of reasons, lack of trust in the developer, premine and so on.

Abiky

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Quote from: TheUltraElite on August 18, 2023, 12:27:55 AM

Total supply finite or infinite do make a difference. Bitcoin for example has a finite deflationary supply and that augments it's price in the long run. We have coins with infinite supply too and they often perform poorly as compared to those with limited supply. Of course the team and their project's development makes a difference too and these are equally important points to consider when making a complete decision of investing or not.

Overall supply and inflation are important factors to count in the decision making process of investment.

There's small inflation, and then, there's too much inflation. I'd choose my coins wisely, as "not all that glitters is gold". There are so many coins with a huge supply that could end up being worthless in the long run. But that's not always the case, especially if the coin has active development and innovation. Real use cases is what matters above all else.

Consider how Dogecoin is still worth something even though there are lots of coins in circulation. New units will be created every year, leaving us with an endless supply of DOGE. Coins with a limited supply are more likely to rise in price within a short amount of time. I'm talking about coins like Bitcoin, Litecoin, Diamond (DMD), and Dash. Especially Bitcoin which is the most popular cryptocurrency in the world. Who knows how the market will change in the long run as new players join the scene? Just my thoughts Grin

aseprebel

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Quote from: barhavsky on August 08, 2023, 04:05:40 AM

Quote from: StormHawk on March 25, 2023, 12:34:57 PM

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

the total supply is not very important for me, because for me the total supply is just an additional point for my research, so the most important thing is the team of the project, the product of the project, the partners of the project and the progress of the project, so the total supply is not too important for me and the important thing is that the product of the project is useful and the allocation of the total supply is clear.

There isn't a one-size-fits-all answer, as different industries, technologies, and market conditions can all play a role in determining what might be considered a reasonable circulating supply for investment purposes.
Some factors to consider when evaluating the circulating supply of a project,the first is Tokenomics, Evaluate the project's tokenomics, including the total max supply, the rate of token issuance if applicable, and how tokens are distributed e.g pre-sale, public sale, team allocation, ecosystem fund, etc.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: barhavsky on August 08, 2023, 04:05:40 AM

the total supply is not very important for me, because for me the total supply is just an additional point for my research, so the most important thing is the team of the project, the product of the project, the partners of the project and the progress of the project, so the total supply is not too important for me and the important thing is that the product of the project is useful and the allocation of the total supply is clear.

Total supply finite or infinite do make a difference. Bitcoin for example has a finite deflationary supply and that augments it's price in the long run. We have coins with infinite supply too and they often perform poorly as compared to those with limited supply. Of course the team and their project's development makes a difference too and these are equally important points to consider when making a complete decision of investing or not.

Overall supply and inflation are important factors to count in the decision making process of investment.

barhavsky

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Quote from: StormHawk on March 25, 2023, 12:34:57 PM

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

the total supply is not very important for me, because for me the total supply is just an additional point for my research, so the most important thing is the team of the project, the product of the project, the partners of the project and the progress of the project, so the total supply is not too important for me and the important thing is that the product of the project is useful and the allocation of the total supply is clear.

fmz89

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Quote from: StormHawk on March 25, 2023, 12:34:57 PM

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

cus is gonna infinite dumping like icp and many others. low cap on launch they called fair launch lol, this only good on mining cases not some unminable coin
lbry dead because of this, and people who get early stage will burned with this typical scam show

Abiky

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Quote from: QueenVera on July 21, 2023, 08:24:22 AM

Small circulating supply profits a project that's why Bitcoin has only 21 million supply and the price is around $30k because of the low supply and we have other projects benefiting from the low supply and we can see their price high which is why other projects with high supply like BNB is burning their supply so they can reduced their circulating supply to attract more investors.
If a coin like Dogecoin had a small circulating supply it would had been worth more than $100 because of the hype the project has but because it doesn't have a maximum supply, it'll be very difficult for the coin to pass $1. Other project like Shiba Inu will take forever because of the trillions of supply the coin has. Large communication also is important for a project success.
We have many things that contribute to the success of a project and having limited supply is one of them then we have the community support and the marketing of the project. Many projects aren't worth what they're valued but because of their marketing they're among the top projects. So a token having just small circulating supply doesn't mean it's a good project to invest into.

Circulating supply is one of the many things we need to consider when investing in a cryptocurrency. Just because the supply is low, doesn't mean the coin will be a huge success. Like I've said before, you need to consider how active a coin is in terms of development and innovation. As long as it's driven by utility (not speculation), you can be sure it will last for a very long time. Probably forever. Such is the case with Bitcoin and Litecoin (although LTC is not that actively developed as BTC is).

I'd advise you play your cards right by investing in these two coins alone. ETH is another option, even though its supply is finite. Who knows how far these coins will go in the next bull market? Just my opinion

I_RodimusPrime

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Quote from: StormHawk on March 25, 2023, 12:34:57 PM

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

small circulating supply means in long run project can be gain more profits. So yes Circulating supply matters to me. Roll Eyes

QueenVera

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Quote from: Jocuserious on July 20, 2023, 12:13:24 PM

In my opinion a small circulating supply increases the value of tokens and especially if they have a large community of investors. Moreover, the demand for a token is high only when they do development activities aiming at the quality of the project.
Moreover, many projects occupy a large market with more supply. Because they value investors more and looking at profit they supply different products.

Small circulating supply profits a project that's why Bitcoin has only 21 million supply and the price is around $30k because of the low supply and we have other projects benefiting from the low supply and we can see their price high which is why other projects with high supply like BNB is burning their supply so they can reduced their circulating supply to attract more investors.
If a coin like Dogecoin had a small circulating supply it would had been worth more than $100 because of the hype the project has but because it doesn't have a maximum supply, it'll be very difficult for the coin to pass $1. Other project like Shiba Inu will take forever because of the trillions of supply the coin has. Large communication also is important for a project success.
We have many things that contribute to the success of a project and having limited supply is one of them then we have the community support and the marketing of the project. Many projects aren't worth what they're valued but because of their marketing they're among the top projects. So a token having just small circulating supply doesn't mean it's a good project to invest into.

Jocuserious

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In my opinion a small circulating supply increases the value of tokens and especially if they have a large community of investors. Moreover, the demand for a token is high only when they do development activities aiming at the quality of the project.
Moreover, many projects occupy a large market with more supply. Because they value investors more and looking at profit they supply different products.

jaberwock

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Quote from: fuguebtc on July 16, 2023, 10:57:43 PM

I'm not saying supply isn't important, but it's not the only factor that determines a project's potential. Why do you say ETH is different when it has an unlimited supply? Because it was successful? It is also an altcoin, and in the past many bitcoin investors despised it, but now they cannot deny its success. I guess you are one of them, you only accept ETH when it succeeds, and you missed your chance with it.

As for alternative investing, it's more of a speculative market than an investment. So I wouldn't care too much about the supply or the use case... as long as it can make a profit, I will never ignore it.

There is a difference, in theory it is unlimited, but there is burning as well, which means that the amount of ETH could drop as well as go up, which means that it is not forever going up, it depends on the market. This is why we believe it's different.

Plus, it is definitely not the same thing as being second highest ranked coin and some other coin, of course being unlimited matters between them, when you are second ranked coin, that doesn't mean that you are going to end up with some devastating bad result suddenly, but when you are something lower, some other coin, then it could drop to very new lows and could result with something much worse. I believe that we can't really change that, it's going to just have to be the way it is.

darewaller

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Quote from: Abiky on July 12, 2023, 10:03:04 PM

Quote from: StormHawk on March 25, 2023, 12:34:57 PM

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

Not sure. But I can tell you that any circulating supply above the "millions" is totally not worth it. That's if you're looking into coins that're ideal as a store of value. Cryptocurrencies such as Bitcoin, Litecoin, and Dash all have an extremely-limited circulating supply. The max supply is also lower compared to other coins being traded on the market today. You can invest into them now, and obtain huge returns in the future (especially Bitcoin). I cannot say the same about Ethereum, Cardano, BNB, and the likes. These have large circulating supplies, making them useful only as digital cash.

Depending on your needs, will be the type of coin to choose. Be advised that just because a coin has a large circulating supply, doesn't mean it's destined to failure. It's all about how active the coin is in terms of development and innovation, and what use cases it provides to the world. As long as you play your cards right, you'll be able to avoid losing it all further down the road. Who knows which altcoins will be able to stand the test of time? Just my thoughts Grin

Above millions is still within a million e.g 999.999 million and I think it was still better compared to a billion or more supply. BTC and many other good cryptos has a million supply though. Many coins nowadays are only just a junk, that is why they have boat loads of supply. If there is a coin that can be called as a digital cash, it was still Bitcoin. This is its main concept. It's fast, fees aren't that high, and popularly accepted almost anywhere.

Other coins that you named are good for an asset use because of their huge supply and we can see that their growth rates are very slow. If there is an altcoin that can last long like BTC, that would definitely be ETH.

Zaichonok

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Quote from: Bolivar_Tony on July 17, 2023, 11:24:47 PM

Quote from: StormHawk on March 25, 2023, 12:34:57 PM

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

well it's tricky to answer, because some might have huge number of tokens minted, so even if they release 5 percent as the circulating supply, it could be a very huge amount of token, so first, i look at the total supply before circulating

The matter is team of the project can issue more and more tokens. Its is simple to issue tokens but it is very difficult to create demand in such tokens.

Bolivar_Tony

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Quote from: StormHawk on March 25, 2023, 12:34:57 PM

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

well it's tricky to answer, because some might have huge number of tokens minted, so even if they release 5 percent as the circulating supply, it could be a very huge amount of token, so first, i look at the total supply before circulating

serjent05

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Quote from: nyashenka on July 17, 2023, 03:34:11 PM

Quote from: molsewid on July 17, 2023, 12:38:50 PM

Indeed, take for an example a certain p2e game last 2021 they did not manage the circulating supply of their nft coins and their token they are in the peak of their career after 3 year but then they did not expect that this 2021 they will be on the mainstream media and that incident made the project fall but it is still alive but the players decrease so bad and still they have a lot of supply.

You are right the most important is to create demand in the tokens. And sometimes it is very difficult to do this. It is simple it issue a lot of tokens but how to create demand in them. To do this it is necessary to create something useful for people that people will be glad to buy tokens and use them.

True it is important to create demand for the token but if the token supply is gazillions then the effort will be wasted due to over saturated market. It is important to think and study thoroughly the maximum supply of the token and not just blindly allocate it. Investors will grow tired if the price of the token is tanking, and every time there is an attempt to push adoption to uptrend the price, the massive number of token in circulation will often hinder this growth.

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Quote from: nyashenka on July 17, 2023, 03:34:11 PM

Quote from: molsewid on July 17, 2023, 12:38:50 PM

Indeed, take for an example a certain p2e game last 2021 they did not manage the circulating supply of their nft coins and their token they are in the peak of their career after 3 year but then they did not expect that this 2021 they will be on the mainstream media and that incident made the project fall but it is still alive but the players decrease so bad and still they have a lot of supply.

You are right the most important is to create demand in the tokens. And sometimes it is very difficult to do this. It is simple it issue a lot of tokens but how to create demand in them. To do this it is necessary to create something useful for people that people will be glad to buy tokens and use them.

the thing with these P2E games in general is the fact that their economic aren't sustaining, the token generated steadily increase as the time goes, you could see that there are so many that farming accounts in getting more and more tokens, the developers themselves doesn't really enforce limitation thus the heavily inflated token supply to the market.
definitely it eventually gonna overwhelm the demand itself, making the token more and more valueless.
thats just how those games fail, meanwhile with total supply and circulating supply, so long it mantains good equilibrium with the demand its gonna be fine. not too much not too low.

nyashenka

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Quote from: molsewid on July 17, 2023, 12:38:50 PM

Indeed, take for an example a certain p2e game last 2021 they did not manage the circulating supply of their nft coins and their token they are in the peak of their career after 3 year but then they did not expect that this 2021 they will be on the mainstream media and that incident made the project fall but it is still alive but the players decrease so bad and still they have a lot of supply.

You are right the most important is to create demand in the tokens. And sometimes it is very difficult to do this. It is simple it issue a lot of tokens but how to create demand in them. To do this it is necessary to create something useful for people that people will be glad to buy tokens and use them.

molsewid

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Quote from: wtsimis on July 16, 2023, 12:30:25 PM

Circulating supply is an important issue in the cryptocurrency world. A project circulating supply represents the total number of coins or tokens available on the market and actively circulated among investors. This directly affects the value and market capitalization of cryptocurrencies. We know that low supply creates scarcity in the market which causes the price to rise and more supply can lower the value of the token meaning demand decreases. Investors often consider supply trends when evaluating a cryptocurrency growth potential and determining its attractiveness as an investment. However, other factors such as the project underlying technology, use cases and overall market conditions should be analyzed and then invested in instead of relying solely on the advertised supply.

Indeed, take for an example a certain p2e game last 2021 they did not manage the circulating supply of their nft coins and their token they are in the peak of their career after 3 year but then they did not expect that this 2021 they will be on the mainstream media and that incident made the project fall but it is still alive but the players decrease so bad and still they have a lot of supply.

Abiky

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Quote from: wtsimis on July 16, 2023, 12:30:25 PM

Circulating supply is an important issue in the cryptocurrency world. A project circulating supply represents the total number of coins or tokens available on the market and actively circulated among investors. This directly affects the value and market capitalization of cryptocurrencies. We know that low supply creates scarcity in the market which causes the price to rise and more supply can lower the value of the token meaning demand decreases. Investors often consider supply trends when evaluating a cryptocurrency growth potential and determining its attractiveness as an investment. However, other factors such as the project underlying technology, use cases and overall market conditions should be analyzed and then invested in instead of relying solely on the advertised supply.

When the supply is huge, coins often turn into a scam or become worthless in the long run. Most people don't understand the importance of a coin's circulating supply, as they invest blindly with the hopes of turning a profit in the least time possible. Based on what I've seen, the vast majority of altcoins have a large circulating supply. Only a small few are finite by design. Yet, most altcoins are rising in price like there's no tomorrow. Even ETH is near the $2k range. I guess cryptonomics works in a different way.

What really matters is what real use cases a cryptocurrency provides. Not the price. As long as it's being constantly developed and maintained by the community, there should be nothing to worry about. Who knows which will be the next coins to gather the attention of mainstream investors and traders alike? Just my opinion

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