Total Supply

Total supply refers to the total number of coins or tokens that exist in a cryptocurrency network. This includes all coins that have been mined, created, or issued, minus any that have been burned or destroyed.

Components of Total Supply

Circulating Supply

Circulating supply is the number of coins that are currently available in the open market and can be traded by customers. It excludes coins that are locked, reserved, or otherwise unavailable for trading.

Max Supply

Max supply, or maximum supply, is the total number of coins that will ever exist in a cryptocurrency network. This is a fixed number and cannot be exceeded.

Mineable Coins

Mineable coins are those that can be created through the process of mining. Each new block added to the blockchain typically results in the creation of new coins.

Total Supply Includes Coins

Total supply includes all coins that have been mined, created, or issued, minus any that have been burned or destroyed. This gives a comprehensive view of the total number of coins in existence.

Market Capitalization and Competitive Prices

Market capitalization is calculated by multiplying the circulating supply by the current price of the coin. Competitive prices in the market can influence the market capitalization significantly.

Smart Contracts and Tokens

Smart contracts can create new tokens, which can be included in the total supply. These tokens can be used for various purposes, including as a medium of exchange or as a utility within a specific platform.

Example of Total Supply Calculation

For example, if a cryptocurrency has a max supply of 21 million coins, and 18 million have been mined, with 1 million burned, the total supply would be 17 million coins.

Factors Affecting Total Supply

Locked and Reserved Coins

Coins that are locked or reserved are not included in the circulating supply but are part of the total supply.

Burned and Destroyed Coins

Coins that have been burned or destroyed are subtracted from the total supply.

Lost Coins

Coins that are lost and cannot be recovered are also subtracted from the total supply.

Conclusion

Understanding total supply is crucial for evaluating a cryptocurrency's market dynamics. It includes all coins in existence, minus those that have been burned, destroyed, or lost. By considering factors like circulating supply, max supply, and mineable coins, investors can make more informed decisions in the open market.