I'm wondering how the overall amount of a cryptocurrency available, known as the total supply, influences its price in the market.
7 answers
SejongWisdomKeeperElite
Fri Oct 25 2024
The pricing mechanism of a cryptocurrency is influenced by several factors.
CryptoTitaness
Fri Oct 25 2024
Primarily, it is determined by the level of interest in the market to purchase it, which is referred to as demand.
Riccardo
Fri Oct 25 2024
Another crucial aspect is the quantity available for purchase, known as supply.
CryptoTrader
Thu Oct 24 2024
When there is a significant demand for a cryptocurrency but limited supply, its price tends to increase.
Nicola
Thu Oct 24 2024
Conversely, if the demand is low but the supply is high, the price decreases.