Ethereum [ETH] circulating supply hit 100M – Good news or bad news?

As per the Ether supply growth chart, Ethereum [ETH]’s circulating supply has increased to over 100 million. Circulating supply is the best approximation of the number of coins that are circulating in the market, and in the general public’s hands.

As per CoinMarketCap, circulating supply is the main component in calculating the market capitalization instead of total supply or max supply. As coins that are locked, reserved, or coins which cannot be sold on the public market are the coins which cannot affect the price, and they should ideally not affect the market capitalization either.

How does circulating supply matter?

Generally, changes in the circulating supply introduce a price change as circulating supply directly affects the price of the coin. Tracking the circulating supply is the finest way to estimate the demand for a cryptocurrency. As per the market calculations, the lower the circulating supply, the higher the price [depending on market cap with lower market cap giving a lower price].

The circulating supply is the value that is generally used to calculate the price of the coin. A good circulating supply creates demand with investors. Hence, the question arises here if Ethereum’s 100M circulating supply adds in favor of its prices or affects it in a negative format.

Co-founder of Ethereum, Vitalik Buterin, in a recent OmiseGO AMA session also predicts that ETH will achieve 1 million TPS. Aiming to this benchmark Buterin said,

“Bitcoin is currently processing a bit less than three transactions per second and if it goes close to four, it is already at peak capacity. Ethereum has been doing five per second and if it goes above six, then it is also at peak capacity. On the other hand, Uber on average does 12 rides per second, PayPal several hundred, Visa several thousand, major stock exchanges tens of thousands, and in IoT, you’re talking hundreds of thousands per second,”

Ethereum, being the second biggest coin after Bitcoin, shows a growth of circulating supply. The market giant Bitcoin [BTC]’s current circulating supply is just 17 million with a price of $6,816.53 [market cap of $116 billion] as against Ethereum [ETH]’s price of $533.11 [market cap of $53 billion].

reno007, a Reddit user commented:

“Just inflation working. Cant wait until PoS.”

By Ranjitha Shastry
AMB Crypto

https://ambcrypto.com/ethereum-eth-circulating-supply-hit-100m-good-news-bad-news/