![]() ![]() One of the fundamental analysis components that all traders should look at is the circulating supply and the total supply of a coin. ![]() Investing in crypto successfully requires due diligence that starts with fundamental research. The rule of thumb: Ensure that the project you’ve invested in does not have less than 50% of the supply in circulation, otherwise you face dilution risk and a price drop.If a coin’s circulating supply is very far off from its total supply, there is a real dilution risk, because the moment more coins are added to circulation, its value will decrease, especially if fresh demand doesn’t come in to prop up the price.Circulating supply (the number of coins in circulation) and total supply (the maximum number of coins that can exist) are key determinants of a coin’s price.Circulating Supply vs Total Supply: Beware Dilution Risk ![]()
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