The Total supply in the market is a data that indicates the number of units of a token or Cryptocurrency that are currently generated in the market through the mining of Cryptos or in the case of tokens, the generation of new ones. This data must be interpreted since it depends to a large extent on the characteristics of the digital asset, where factors such as the supply limit are taken into account.
You will occasionally see Cryptocurrencies like Bitcoin that have a predefined supply limit of 21,000,000 units, and currently have a total market supply of 19,067,287 BTC. By having an emission limit, its total supply will always be at the same level as the Circulating Supply of Bitcoin itself, and this is because it cannot be removed.
It is also common for some tokens to have a total market supply that varies according to their design. These generated coins can be removed or burned to avoid inflation of the value of the same. There are also Cryptocurrencies or tokens that do not have an issuance limit, such as Tether, where each USDT unit of the token depends on the deposit of one dollar, making this type of token virtually infinite in terms of issuance of new units. This is where the burning of tokens or Cryptocurrencies plays an important role, since if we have a currency that in a certain way can be issued almost infinitely, its value would be on the ground after a long time.
As we mentioned earlier, the total market supply of a particular Cryptocurrency can be increased in a number of ways, but this factor largely depends on the design of the Cryptocurrency or token.
Below we list some of the most used ways to create new units of a Crypto asset:
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Of course not, these data are merely informative. Ccoins seeks to educate users on the characteristics of the different Cryptocurrencies within our platform.
The total supply cannot tell us for sure which Cryptocurrency is better than another. If we talk from the economic point of view, the market capitalization would give us the winner if we compare two Cryptocurrencies under this characteristic, but what makes a Cryptocurrency better is a very subjective concept since everything depends on the need that a digital asset can cover.
In a way, it could be said that there are some digital assets whose issuance could be considered infinite, such as Tether or those coins that are anchored to a physical asset, there are also those that do not directly have a predefined issuance limit.
