Tag: Circulating Supply

Valuation Methods: Identifying Circulating Supply

Posted By under Valuation Framework ,

Circulating supply is the number of coins (cryptocurrencies, tokens) in circulation.

It can be defined different ways – the key is that it’s defined the same across components of the equation of exchange.

For example, if circulating supply means “coins which moved within the past year,” the velocity, monetary base, and total purchases should also reference those specific coins.

Generally, it’s helpful to define circulating supply to include coins with a coin age less than one year, and exclude coins on-exchange, staked, and burned.

Read Why Market Cap Is A Bad Metric to learn why other measurements of supply are misleading for valuing cryptocurrency with the equation of exchange.

Valuation Components: Circulating Supply

Posted By under Cryptocurrency Valuation, Valuation Framework

Circulating supply is the number of coins (cryptocurrencies, tokens) *in circulation*.

Circulating can mean this week, this month, or this year.

The time frame isn’t important, so long as it’s consistent across components of the equation of exchange.

For example, if *circulating supply* means “coins which moved within the past year,” V, velocity should also measure those specific coins.

Read about types of supply in Market Cap is a Bad Metric to understand why circulating supply fits with the Eat Sleep Crypto valuation framework using the equation of exchange.