What is Supply, Market Cap, Liquidity and Volume


🪙 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


💰 Market Cap (MC)

Total Value of the Coin. The total value of all circulating coins

Formula: Market Cap = Coin Price × Circulating Supply

Example: If a coin has 500,000 coins in circulation and each is worth $0.10, the Market Cap = $50,000


💦 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 won’t change muсh


📊 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


If you have questions about any terms on this page and see a (?) symbol next to them, you can learn more by checking these links:

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