Crypto Terms:
Letter T
Jun 19, 2023 |
updated Apr 02, 2024
What is Total Supply?
Total Supply Meaning:
Total Supply -
the total amount of cryptocurrency coins in existence, excluding the burned assets.
Let's find out Total Supply meaning, definition in crypto, what is Total Supply, and all other detailed facts.
Total supply refers to the total amount of cryptocurrency coins that have been mined, excluding the coins that were burned. Not all coins included in the total supply are freely available for the holders to use.
Total supply differs from circulating and max supply. Circulating supply encompasses all coins that have been mined and are usable while excluding all coins that have not been created yet. Max supply refers to the overall supply of coins, including assets that can exist throughout the lifespan of the cryptocurrency, such as unmined and burned assets.
Circulating supply is the metric that experts use to determine the market capitalization, or market cap, of different assets, including cryptocurrencies. Since circulating supply excludes non-usable coins, it can reflect the prices of crypto in the market more reliably.
Total supply is used to determine the profitability of a cryptocurrency. Investors can decide whether it’s worth investing in the asset at the given time. A significant gap between circulating and total supply can indicate that the cryptocurrency may be profitable in the future.
Some of the coins included in the total supply are considered locked. These assets are kept out of circulation for a number of reasons, often because they are pre-mined assets or were locked in a smart contract.
Token holders can lock their assets in a smart contract for a specific purpose, such as setting them as collateral or waiting for a certain stage of an initial coin offering (ICO).
Max supply and total supply can differ quite significantly. The max supply of Bitcoin (BTC) is 21 million coins. Roughly 90% of BTC has already been mined and around 4 million assets are considered lost.
DeFi application<\/strong><\/a>. Overall, TVL is a metric used to assess the health of the DeFi and yielding markets.<\/p>\n<p>When calculating and analyzing the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-market-capitalization-market-cap-mcap/">market cap<\/strong><\/a> TVL ratio of a decentralized financial service, three primary factors are taken into account:<\/p>\n<ul>\n<li>The <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-circulating-supply/">circulating supply<\/strong><\/a><\/li>\n<li>The <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-max-supply/">maximum supply<\/strong><\/a><\/li>\n<li>The current price<\/li>\n<\/ul>\n<p><em>How to calculate the TVL ratio? <\/em>First, you need to multiply the circulating supply by the current price to get the current market cap. Then, take the market cap number and divide it by the service's TVL to get the TVL ratio.<\/p>\n<p>Theoretically, <strong>the higher the TVL ratio<\/strong>, the lower the asset's value must be. Though it’s not always the case. One of the simplest applications of the TVL ratio is to assess whether a DeFi asset is undervalued or overvalued (if it is less than 1, it is <strong>undervalued<\/strong>).<\/p>","definition":"a measure that shows how many assets are currently staked in a protocol.","status":"published","updated_at":"2024-04-02T14:16:56.000000Z"}"
:prev-section="{"id":764,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency_exchange","level":"easy","section":"T","keyword_en":"Total Exchange Volume","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","slug":"what-is-total-exchange-volume","title":"What is Total Exchange Volume?","keyword":"Total Exchange Volume","content":"<p><strong>Total exchange volume<\/strong> measures the total amount of a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrency/strong>/a> that has been traded on a particular <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-exchange/">exchange/strong>/a>. Practically all cryptocurrency exchanges track and record it on the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain/strong>/a> daily. The total exchange volume of a specific exchange can be located on their websites. The amount of currency that has been traded in the last 24 hours is called the <strong>daily exchange volume<\/strong>.<\/p>\n<h3>Why Is Total Exchange Volume Important?<\/h3>\n<p>For cryptocurrency traders, total exchange volume is a crucial metric since it displays how much money is being moved on a given platform. The exchange is more liquid if the number is higher. Therefore, trading big quantities of cryptocurrency on exchanges with greater total exchange volumes is much easier.<\/p>\n<p>Since it <strong>considers multiple elements that determine value<\/strong>, total exchange volume is a more accurate indicator of value than <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-market-capitalization-market-cap-mcap/">market capitalization<\/strong><\/a>. It assesses not only supply and demand, but also active use cases and a <strong>cryptocurrency's potential growth<\/strong>.<\/p>\n<p><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-volume/">Volume/strong>/a> is one of the most influential factors in the crypto market. The volume of a market can influence where a cryptocurrency will trade and overall how valuable it is. Traders prefer <strong>high-volume markets<\/strong> because they have more <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-liquidity/">liquidity/strong>/a> and reduced <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-volatility/">volatility/strong>/a>. This is the case because there might not be enough liquidity to support price changes when huge orders are made in low-volume markets.<\/p>\n<p>The <strong>fundamental purpose of exchange volume<\/strong> is to demonstrate how well prices stand during periods of strong activity. For instance, if prices are setting new highs on light volume, it indicates that traders aren't persuaded that the upward trend will last.<\/p>","definition":"a measure of the total amount of a digital currency that has been moved on a particular exchange.","status":"published","updated_at":"2024-04-02T14:16:56.000000Z"}"
:model="{"id":904,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Supply_(economics)","level":"easy","section":"T","keyword_en":"Total Supply","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","slug":"what-is-total-supply","title":"What is Total Supply?","keyword":"Total Supply","content":"<p>Total supply refers to the total amount of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-coin/">cryptocurrency coins<\/strong><\/a> that have been mined, excluding the coins that were <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-burning/">burned/strong>/a>. Not all coins included in the total supply are freely available for the holders to use.<\/p>\n<p>Total supply differs from <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-circulating-supply/">circulating/strong>/a> and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-max-supply/">max/strong>/a> supply. Circulating supply encompasses <strong>all coins that have been mined and are usable while excluding all coins that have not been created yet<\/strong>. Max supply refers to the overall supply of coins, including assets that can exist throughout the lifespan of the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrency/strong>/a>, such as unmined and burned assets.<\/p>\n<p>Circulating supply is the metric that experts use to determine the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-market-capitalization-market-cap-mcap/">market capitalization<\/strong><\/strong><\/a>, or market cap, of different assets, including cryptocurrencies. Since circulating supply excludes non-usable coins, it can reflect the prices of crypto in the market more reliably.<\/p>\n<p>Total supply is used to determine the profitability of a cryptocurrency. Investors can decide whether it’s worth investing in the asset at the given time. A significant gap between circulating and total supply can indicate that the cryptocurrency may be profitable in the future.<\/p>\n<p>Some of the coins included in the total supply are considered <strong>locked<\/strong>. These assets are kept out of circulation for a number of reasons, often because they are <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-pre-mining/">pre-mined/strong>/a> assets or were locked in a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contract<\/strong><\/a>.<\/p>\n<p>Token holders can lock their assets in a smart contract for a specific purpose, such as setting them as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-collateral/">collateral/strong>/a> or waiting for a certain stage of an <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-initial-coin-offering-ico/">initial coin offering (ICO)<\/strong><\/strong><\/a>.<\/p>\n<p>Max supply and total supply can differ quite significantly. The max supply of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin (BTC)<\/strong><\/a> is 21 million coins. Roughly 90% of BTC has already been mined and around 4 million assets are considered lost.<\/p>","definition":"the total amount of cryptocurrency coins in existence, excluding the burned assets.","status":"published","updated_at":"2024-04-02T14:16:57.000000Z","author":{"id":1,"user_id":1,"image_id":2641,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-02-29T07:19:25.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","referral_token":"05TMu2NysXOCn525","referred_by":null,"last_connected_at":"2024-04-09T08:14:54.000000Z","created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-04-09T08:14:54.000000Z","full_name":"Aaron S."}}}"
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current-chapter="T"
current-section="what-is-total-supply">