Can you explain the significance of outstanding and float in the world of cryptocurrencies?

1 answers

• McElroy VinterApr 05, 2021 · 4 years ago
  In the world of cryptocurrencies, outstanding and float play a crucial role in determining the market dynamics and investor sentiment. Outstanding refers to the total number of coins or tokens that have been issued and are currently in circulation. It represents the supply of the cryptocurrency available to the market. On the other hand, float refers to the number of coins or tokens that are actively traded and available for buying and selling. It represents the liquidity of the cryptocurrency in the market. The significance of outstanding and float lies in their impact on the price, market cap, and volatility of a cryptocurrency. A high outstanding supply with a low float may indicate a limited supply and potentially drive up the price. Conversely, a high float with a low outstanding supply may indicate a larger supply and potentially lower price volatility. Investors often consider these factors when evaluating the investment potential of a cryptocurrency.
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