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We know that the price of a token is always a balance between supply and demand. Whenever I check what supply is, I get vague definitions. So I would like to hear your opinions about what exactly supply refers to. I have 4 options:

  • total supply

  • circulating supply

  • 'traded supply' I just invented this concept as the number of tokens existing in the LP of the exchanges). Is there any existing name for this concept?

  • any other option?

I think total supply is very innacurate to correlate with price because you can have locked tokens or tokens in vesting period. For circulating supply, I would accept that it is threat to sudden price changes, but not responsible directly of the price at a certain moment. My guess is that the supply in the supply vs demand equation is only what I call the traded supply, i.e. the number of tokens in the LPs of the exchanges at a certain moment.

But I never read this so this is why i am raising this question.

What is your opinion? Can you provide any reference clariying this point?

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Supply refers to the total number of tokens that are available for trading on the market when used in the supply vs demand equation to determine the price of a token.

It includes tokens that have already been released and are in circulation, as well as tokens that will be available in the future.

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  • how can, tokens that have been held in a wallet for 10 years, and therefore are part of the circulating supply, influde in current price? May 1, 2023 at 0:13

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