1. concept
Total Supply refers to the total quantity of a specific coin or token that is currently in existence. This includes those circulating in the public market and those that are locked or reserved. It is calculated by taking the circulating supply and adding the additional amount of the asset that has been mined or created, but is currently unavailable or locked up.
1.1
"If a cryptocurrency has 1 million coins in circulation, 500,000 coins locked in a development fund, and 500,000 coins held by the project team, its total supply is 2 million coins."
2. significance
The total supply of a coin or token is a key factor in its valuation. It can influence the price and market capitalization of the asset. A lower total supply can lead to a higher price per coin, assuming demand is constant.
2.1
"Bitcoin's total supply is capped at 21 million coins. This limited supply is one of the factors contributing to its value."
3. difference
It's important to distinguish between total supply and maximum supply. The total supply refers to the number of coins or tokens currently in existence, while the maximum supply is the maximum number of coins that can ever exist.
3.1
"If a cryptocurrency has a total supply of 10 million coins and a maximum supply of 20 million coins, it means that there are still 10 million coins that can be mined or released in the future."
* All terms and definitions may update as the Cryptionary improves.
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