Understanding Supply Dynamics: 80% Circulating Supply, Non-Available Tokens, and Free Tokens
When analyzing a cryptocurrency investment, a key strategy some traders focus on is examining the 80% circulating supply. This involves assessing how much of the total supply has already entered the market and how much remains locked, reserved, or designated for specific purposes, such as future development or community incentives.
As free tokens—distributed through mechanisms like airdrops or staking rewards—become part of the circulating supply, they introduce temporary selling pressure. By identifying tokens that won’t make it into the market, such as locked tokens, reserved tokens, and burned tokens, traders ensure that only a controlled portion of the supply is actively available for trading. This helps reduce the overall supply in circulation, preventing sudden dilution and maintaining a more stable market. Therefore, understanding both the reducing free tokens and the non-available tokens within the 80% circulating supply plays a crucial role in assessing supply dynamics, which can positively impact price stability and upward movement.