JejuSunshine
Wed Jul 10 2024
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5 answers
930
How does coin burning affect the price of a cryptocurrency?
Could you elaborate on how the process of coin burning impacts the price dynamics of a particular cryptocurrency? I'm particularly interested in understanding how the reduction of the total supply through this mechanism translates into price movements. Does it create scarcity, thus driving up demand and ultimately the price? Or does it depend on other factors such as market sentiment and investor confidence? What are some real-world examples of how coin burning has shaped the market capitalization and trading volume of specific cryptos?
