Buy Bitcoin here
  • Crypto
    • Bitcoin News
    • Ethereum
    • Altcoin
    • Blockchain
    • Blockchain Companies
    • Cryptocurrency Exchanges
    • DeFi
    • Regulation
    • Cointelegraph news
    • Press Release
    • ICO News
      • ICOs Review
      • Upcoming ICOs
      • Scam
  • Education
    • CryptoTicker Starter Kit
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
    • Events Review
  • Prices
  • Exchange Comparison
  • Newsletter subscribe

  • News

    • Bitcoin News
    • Altcoin
    • Regulation
    • Blockchain Companies
    • Blockchain
    • Cryptocurrency Exchanges
  • News

    • Ethereum
    • Events Review
    • ICO News
    • Press Release
  • Education

    • CryptoTicker Starter Kit
    • Education
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
  • Cryptoticker

    • About us
    • Advertise
    • Media Kit
    • Submit your Press Release
    • Contact
    • Membership Login
  • Social Media

    Facebook Twitter Telegram Youtube
    • Newsletter
  • Crypto
    • Bitcoin News
    • Ethereum
    • Altcoin
    • Blockchain
    • Blockchain Companies
    • Cryptocurrency Exchanges
    • DeFi
    • Regulation
    • Cointelegraph news
    • Press Release
    • ICO News
      • ICOs Review
      • Upcoming ICOs
      • Scam
  • Education
    • CryptoTicker Starter Kit
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
    • Events Review
  • Prices
  • Exchange Comparison
Starter Kit Membership Search
English
English Deutsch
Menu
Search


Education Free Resources

How is the Circulating Supply of Cryptocurrencies Calculated?

Posted On June 3, 2019 Prasanna 0

  • share 
  • share 
  • share 
  • tweet 
  • share 
  • share 

The cryptocurrency world is full of surprises and turns. People who are new or who want to invest in this world always find it difficult to understand the market cap of cryptocurrencies. All cryptocurrencies are capped to specific quantities. There are few cryptocurrencies which are not densely capped and have an infinite accumulation. On the other hand, there are also coins (ICO) that are bound by a company which then be circulated in the market (eg: Ripple XRP). A coin’s stock is one of the most significant constituents that influence the market cap and it is the most misinterpreted metric by many people.

Methodology

Cryptocurrency Market Capitalization or Cryptocurrency Market Cap is a valuable metric to understand the true value of cryptocurrency. If you visit coinmarketcap, then you will recognize the coins listed in the descending order of their market cap.

How are the prices determined for the different cryptocurrencies?

The value for every particular market pair is computed by holding the unconverted amount listed undeviatingly from the exchange and turning it to USD by applying the exchange’s enduring reference prices.

Example

Let (X) be the value of LTC/BTC listed undeviatingly from the exchange.

Let (Y) be the last identified price of BTC in USD.

Let (Z) be the obtained value listed for the market pair.

For this example, let (X) = 0.01 BTC / 1 LTC and let (Y) = 10,000 USD / 1 BTC.

Z = X * Y

Z = (0.01 BTC / 1 LTC) * (10,000 USD / 1 BTC) = 100 USD / 1 LTC

Therefore, the obtained price for LTC/BTC on this particular market pair is $100 USD.

Circulating Supply

Circulating supply is the number of coins or tokens that’s been excavated or formed. It’s the rough amount that’s currently in hands and distributing in the market. The market capitalization is one method to estimate the corresponding size of a cryptocurrency. It’s computed by multiplying the value by the circulating supply.

Market Cap = Price X Circulating Supply

The value of any cryptocurrency is a volume-weighted mean of market pair values for the cryptocurrency. The greater the percentage of volume supplied from the combination, the more impact it has on the medium price. The justification for applying a weighted proportion is because in common, markets with greater volume have greater liquidity and are less inclined to price vacillations.

A coin is devised in such a method that it should never surpass its max supply. However, the mystery is will a coin touch its max supply and when? Let’s take Bitcoin as an illustration. It is predicted that the nearby year 2140 BTC will strike its highest supply. Bitcoin has regulated supply and its block reward reduces every 4 years. It is anticipated by the year 2032 99% of the Bitcoins will be excavated. To mine just that last 1% it needs 100 years.

Circulating Supply is the soundest estimate of the number of coins that are flowing in the market. The circulating supply is a much reliable metric than Total Supply for defining the market capitalization – Coins that are secured, stored, or not ready to be exchanged on the public market, are coins that cannot influence the price and thus should not be permitted to influence the market capitalization as well. The process of applying the circulating supply is comparable with the process of applying public float to define the market capitalization of companies in conventional investing.

Conclusion

The number of coins that is now in circulation + newly mined coins is the Total supply. Total supply is the cumulative number of coins that is currently in presence however not all are flowing. For many analyses, there are coins that are stored or secured and are not traded for the public market which doesn’t move the coin value. Total supply is usually equivalent to or higher than the circulating supply.

Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.

Follow us on Twitter, Facebook, Steemit, and join our Telegram channel for the latest blockchain and cryptocurrency news. 

 

  • share 
  • share 
  • share 
  • tweet 
  • share 
  • share 

Trading Bitcoin is too complicated?

We highly recommend our Crypto-Starter-Kit to you! 

Or are you looking for the current Bitcoin Price in USD? Look no further!
Bitcoin Price, Ethereum Price, Ripple Price  

 

 

Follow us on Social Media and subscribe to our free crypto newsletter!

@Telegram
@Instagram
@Twitter 
@TikTok
@Facebook

Diskutiere mit uns!

About Trading @CT Trader
About Crypto in general @CT Inside

This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)

Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 

#Bitcoin#Circulating Supply#Crypto Market



You might also like

Bitcoin Bitcoin News Crypto TradingView

Bitcoin Double Spend – Why Bitcoin Prices Crashed
January 22, 2021
Bitcoin Crypto TradingView

Is the crypto bull run over? BTC price dives by 13% in the past 24 hours
January 21, 2021
Bitcoin Crypto TradingView

Bitcoin Price Prediction: BTC at risk of falling below $30,000 after losing critical support
January 21, 2021

More from Education

What are the best Monero (XMR) wallets?
Posted On January 22, 2021 Robert Weiss 0

Monero is one of the most popular anonymous cryptocurrencies because of its high level of security, privacy, and strong technology. …

Forget about Mining Bitcoin…Focus on Mining THIS
Posted On January 21, 2021 Rudy Fares 0

If you ever thought about making passive income through mining Bitcoin, you would've made TONS of money...5 years ago. Today, …

How to Pay with Cryptocurrencies?
Posted On January 19, 2021 Rudy Fares 0

Cryptocurrencies have been making headlines for more than 3 years now. Despite this notorious fame, there are still people who …

In order to support and motivate the CryptoTicker team, especially in times of Corona, to continue to deliver good content, we would like to ask you to donate a small amount. Independent journalism can only survive if we stick together as a society. Thank you


  • Top Broker

    Bybit
    bybit
    Review · Visit
    Plus500
    Plus500
    Review · Visit

    Top Exchanges

    Kraken
    Kraken
    Review
    Coinbase
    Coinbase
    Review · Visit
  • Newsletter subscription




  • News

    • Bitcoin News
    • Altcoin
    • Regulation
    • Blockchain Companies
    • Blockchain
    • Cryptocurrency Exchanges
  • News

    • Ethereum
    • Events Review
    • ICO News
    • Press Release
  • Education

    • CryptoTicker Starter Kit
    • Education
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
  • Cryptoticker

    • About us
    • Advertise
    • Media Kit
    • Submit your Press Release
    • Contact
    • Membership Login
  • Social Media












    Newsletter


  • Imprint
  • Privacy Policy
  • Non-liability Disclaimer
©2021 CryptoTicker

Share

Share stories you like to your friends