Why total supply matters more than price
Do you ever wonder why some coins cost pennies, while others are thousands of dollars, yet both can be huge projects? 🤔 It's not just about the price per coin!
Many beginners only look at a coin's price when thinking about its value. But the price per coin doesn't tell the full story!
Imagine a coin priced at $1 with 1 billion coins in total circulation. Now imagine another coin priced at $100 but with only 1 million coins in circulation.
Which one has a bigger overall value? The first one! 🍎 This 'overall value' is called market capitalization, and it's calculated by multiplying the coin's price by its total supply. 📈
Understanding a coin's total supply is super important because it helps you see the actual size and value of a crypto project.
A project with a low price but a huge total supply can have a much larger market cap than a project with a high price and a small total supply.
So, don't just focus on the price tag; always check the total supply to get a clearer picture of a project's true market size. 💡
#Tokenomics #CryptoEducation #TotalSupply #MarketCap #BeginnerCrypto
- Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.