It is very important to understand a coins tokenomics before investing and to know well about its inflation and supply/demand. These things I nam telling you are extremely important for choosing a good coin and for its future growth, so you can get a clear idea before investing.
There are few things which is must to note before investing in any coin. The first thing is the use case of the coin, what is the purpose of this coin? Where it is used? if the usecase is good then the project is also good which indicates the good growth potential of that coin in future.
The next thing to watch is the market cap and total supply of the coin. The total supply must be close to the market cap which makes it even more strong. Lets say any coin has the market cap of 10M, then the total circulating supply must be close to 10M (around 7-8M) is quite good.
Also it is very important to note that whether the coin has any burning mechanism or the coin is just printing on regular interval without having any burning mechanism. Such coins are hard to rise in price because they coins are kept on printing which decreases its demand.
Usecase and Circulating Supply matters alot in crypto
Keep in mind that any coin whose total markert cap is limited (meaning there will be no coins print after the max supply is reached) are the best coins to invest. They will gain high demand, people will have more interest into it, the more demand will have the more buying will occur which will take the price high.
The very clear example is #Bitcoin... The total supply of #Bitcoin is 21M. Right now, the ciculation supply is around 19.95M which is very close to the total supply. That is why this coin pumped hard, price kepts on rising, it makes new all time high.
95% of the supply has reached the total supply which makes this coin strong? What will happen after Bitcoin reaches its total supply? After reaching the total supply, there no coins will be printing. The coins which are already printed will be in circulation afterwards and the demand will rise.
Its case will be just like #Gold. Have you seen that gold is priting more and more? No, but the same amount of gold is being circulated among the investors. That is why the demand for gold is increasing day by day and in result the price keeps on increasing.
The same will happen to Bitcoin. Once the circulating supply will reach its total supply, the demand for bitcoin will rise and probably the price of bitcoin will keep on rising.
Now, lets compare all these to #Colony and #Script token. (The data is taken from Arcadecolony
The total Supply is 334.1 million
Total Liquid: 227 million
Total Staked: 107 million
I tried to find its circulating supply but couldn't. There is no information provided in the site. But from the above stats I came to the conclusion that total supply is equal to the total liquid. This is very good to see that the circulating supply is almost to the total supply.
Also this token has a best use case. #Colony and #Script are the gaming tokens for #arcadecolony. They are used in playing games and this is known as one of the best sectors right now. The proper use case and the good stats of the token makes it strong. That is one of the main reason why I am investing in this token.
Similarly, the same is the case for #Script token. But I see more interest in #Colony token and in future it has more chance to rise in price. Its not a financial advice but based on my research. I am accumulating more #Colony and #Script right now which is at its lowest value. I hope it will rise in future and will grow my wealth.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Those who will interact will get my 100% upvotes. My staking is increasing. Thank you all for your time reading the content.
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