What is Supply, Market Cap, Liquidity and Volume
๐ช Supply
Total Coins Available. This is the total number of coins that exist
Total Supply is the total amount of coins ever created
Circulating Supply is the number of coins currently in use (not burned or locked)
Example: If a project creates 1,000,000 coins but burns 200,000, then the Total Supply = 800,000 coins
If Mint (?) is enabledโnew coins can be created after launch, which may dilute value.
๐ฐ Market Cap (MC)
Total Value of the Coin. The total value of all circulating coins
Example: If a coin has 500,000 coins in circulation and each is worth $0.10, the Market Cap = $50,000
High MC โ safety! Check Liquidity and Audit (Mint, LP Burnt, T10 and Freeze (?))
๐ฆ Liquidity
How Easy It Is to Buy/Sell. The amount of money available for buying and selling the coin smoothly
Example: If liquidity is only $5,000 and someone buys $4,000 worth of coins, the price will jump a lot. If liquidity is $500,000, the price wonโt change muัh
Check if LP is Burnt (?) for liquidity safety
Low liquidity means higher risk of price impact
๐ Volume
Trading Activity in X time. The total amount of money used to buy and sell the coin in X time. High volume means more active trading and a more stable price
Example: If people trade a coin for $100,000 in one day, the 24-hour trading volume = $100,000
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