Yes supply is the most important metric to determine how to price a token. If the supply is unlimited and you need to look at the mining rate or supply issuance rate.
For example, most don’t realize how many dogecoins there are. Not only that but the mining supply is still huge. If you understood this then you would realize that Dogecoin at $1,$5 or $10 just isn’t possible.
Topic: Circulating supply matters to you? - page 8. (Read 1083 times)
In my view so far avoiding low supply projects can be a wise choice as low supply can maximally affect the asset price and project performance.
If the project is a new project and the use case kills it then it should be a serious consideration. New projects usually have a higher risk than established projects. However, if there is confidence that the project can thrive and be well received by the market then it may be worth considering.
If the project is a new project and the use case kills it then it should be a serious consideration. New projects usually have a higher risk than established projects. However, if there is confidence that the project can thrive and be well received by the market then it may be worth considering.
What is the fair percentage of a total max supply that are in circulation that can make you invest in a project?
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Tokenomics. Because there are more coins available for trading when there is a higher circulating supply, it can be more challenging for a cryptocurrency to experience significant price increases. The fewer coins available for trading, a cryptocurrency may be more susceptible to price increases if its circulating supply is smaller. (....)
It matters to me, because I would need to analyze if the cause use, the adoption and the cases where burning may take place may have a good possibility to overcome the future (planned) inflation expected to be suffered by the coin, due to the increase of the circulating supply.
If the circulating supply is low it means there is much planned inflation ahead.
If the circulating supply is high and the development/adoption continues to increase, then there is more chance to a increase in the price/market capitalization.
Bitcoin is a good example of this latter case, in my opinion.
Also, we must keep in mind what kind of power the developers have over said percentage, whether they can or not to artificially decrease or increase it. For obvious reasons.
If the circulating supply is low it means there is much planned inflation ahead.
If the circulating supply is high and the development/adoption continues to increase, then there is more chance to a increase in the price/market capitalization.
Bitcoin is a good example of this latter case, in my opinion.
Also, we must keep in mind what kind of power the developers have over said percentage, whether they can or not to artificially decrease or increase it. For obvious reasons.
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?
A supply that actually makes sense with the use case that the project wants to present. I certainly don't see any advantage to investing in a project that has a seemingly infinite number of coins at its release with no plans to balance it out according to their project plans. A big token supply can actually be understandable if the mechanics for it being burned (or something similar) is rather big as well, it's just like any regular good project, just scaled up in terms of token numbers. 
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?
But price compared to it matters a lot as that defines the marketcap. Number itself (of circulating supply) can be anything, big of small, that doesn't matter. There can be even ton of digits after it, it doesn't matter either.But calculating marketcap via circulating supply can be misleading if you don't know the token issuance rate and max supply. Because issuance rate could flood the market with too much tokens for market makers to handle. That would mean inflation and total crash.
Fundamentals (as token use cases) is whole another subject.
even I'd be very hesitant investing if the circulating supply is humongous that I'd always consider such coin as shit coin or meme token, despite not being one.
total supply is essential, much more circulating supply that affects the price in the market. i'd say if it's seemed too much of a circulating supply and the coin unlocked are also massive, then it'd hardly ever increase in term of value. so, circulating supply determine quality of such project and whether it deserve investment or not at all.
total supply is essential, much more circulating supply that affects the price in the market. i'd say if it's seemed too much of a circulating supply and the coin unlocked are also massive, then it'd hardly ever increase in term of value. so, circulating supply determine quality of such project and whether it deserve investment or not at all.
Yes! Circulating supply matters because it affects the price of the token or coins. We all know that price is dependent on supply and demand so whenever one of these factors changes the price of token will move accordingly. More supply means the market is saturated and the price will be reduced, while more demand means the price will increase because people are buying. So the circulating supply does matters because it is the indicator whether the price of the token will have the possibility of surging or not.
fair percentage of the circulating supply is relative. but the key take away is that, the smaller it gets, the more price it'd carry, even ethereum despite being famous altcoin still like to burn and reduce its total supply.
of course any coin that you invested to should do the same if they want increase their price.
of course any coin that you invested to should do the same if they want increase their price.
of course circulating supply matters, it determines the value that it deserve, usually coin with too much of circulating supply will have low valuation, many would think that it's just shitcoin unless the project itself already having good quality before hand then releasing some of the vested coin will do fine for their valuation. if you are trying to invest in new coin and find their total supply and circulating supply too much better not invest.
coin supply is very influential on market prices, we can see that btc has a predetermined supply until the end of its journey, the value given is truly fantastic when people in this world know it, and want to own it,
for new coins themselves at this time there are rarely coins that have a small supply of course a fantastic supply, but they have their own way of convincing new investors by burning their coins regularly, whose goal is to make the price go up
for new coins themselves at this time there are rarely coins that have a small supply of course a fantastic supply, but they have their own way of convincing new investors by burning their coins regularly, whose goal is to make the price go up
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?
Low supply, and a good project most likely will appreciate in value while having a huge supply yet the project is not that good can be a big issue. Investors are looking for the fundamentals of the project as well, if they saw good usage then they will surely buy. For me, I prefer those who have a small supply but offers a great service and technology, they usually enter the top spot. 
actually total supply is an important indicator for estimating prices but total supply is not the only indicator in estimating prices. if you want to invest do not make the total supply as the main indicator because many other indicators are also important to determine the price and future of the project. other important indicators e.g. partners, community and locked tokens.
I will still invest despite the huge max supply. It just needs some good evidence that the team is serious and have already achieved some of its milestone from the roadmap.
Whether we like it or not, even if it's not what you are after, the people and investors are looking forward to making a profit and seeing the price of the token be more than what it was since yesterday.
Whether we like it or not, even if it's not what you are after, the people and investors are looking forward to making a profit and seeing the price of the token be more than what it was since yesterday.
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?
Some good projects have a low supply and yet they are doing great in terms of their value, so this will depend on the project itself and don’t just based your investment decision by just looking at their total supply, try to consider other indicator as well before you invest. Personally, I prefer those good projects will a low supply volume because they are more expensive especially if there’s a lot of supporter and investor for that project. 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?
Obviously is one of the basic tenant of economics, law of supply and demand.
So yeah, if there is like billions of supply of some certain coin, then it's hard for the price to go up because there are a lot of them in the market. So vice-versa, low cap projects could potentially flew in price if there investors who are going to flock on it because of the low making the price shoot up.
In any case it's one of the factor, but obviously there are other reasons for the project to be successful.
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 certainly familiar thoroughly on tokenomics but if circulating supply is low and the market cap is already high I think that's not the way to pick it. I bookmark a thread on Twitter that goes through about the knowledge on tokenomics and I'm still learning about it. If it has potential to be used by the masses I think that's fine. 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?
Might see new projects get pumped and move fast due to its hype but after that, the drastic drop is also about to witness. Those projects that have no use case will never go far in the long run instead, they will just die. When looking for a project to invest in, we'd rather choose those projects that have a low cap as they have a huge chance to grow in the future compared to those projects that have a huge circulating supply. But of course, it also matters on the project developers and their role in the market because as admitted that not all are worth to invest either. Research is a vital thing to do, otherwise.
All these arguments are certainly understandable and certainly make sense. And on a more positive note, coins with fewer in circulation have a better impact on investment choices. But when investing in a project, I no longer look at this, but at the usefulness of the development for the community. That is, the positive use of the product as a whole
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 don't have any problem with max supply as long the team doesn't temper with it and the contract, if it remain fix, the token will perform well regardless of what tokens are in circulation, the only place I think circulation supply usually have problem is when there is concentration of tokens to a group of whales who can damage the price and control the price, when this happen, they can go far by manipulating the Dao and everything will always be in their favour. Do you know that a coin can be healthy when the total supply is unlock and even distributedm by that I mean distributed in decentralized way in the sense that coins are not congested in a particular wallet.
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