Circulating supply question

I have heard this from 2 youtube videos but can’t quite grasp the concept yet. They outline a concept but can’t quantify or measure it. So for me, it looks vague. How do I know how hard it is to push the price of a token up given its circulating supply?

If the circulating supply keeps increasing, it gets harder and harder to push up the price of a token.

Market cap = Price x Circulating supply

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Timestamp: 10:40

>For your coin to go up by 50% in price, it has to go from 10b, 20b or sometimes even 30b

I don’t get what 10b, 20b, 30b he’s referring to. Perhaps market cap. [

Timestamp: 3:05 – 5:10

>Even if you put massive amount of capital in Axie infinity, it wouldn’t fix its problem. The circulating supply of the SLP token before was around a few millions (1-5 million), while the amount of circulating SLP right now is about 40 billion SLP. It is a very BIG difference in number. The amount of liquidity it would take for Axie infinity to pump up today is literally thousands of times higher than what was needed before.

\*I think I understand the 2nd video more than the first.
But just how much difficulty can we expect per increase in the circulating supply?
Is this something that can be calculated or quantified (maybe a ratio, or formula) so one can get a rough idea how hard it is to increase the price of a token at its current state?

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1 thought on “Circulating supply question”

  1. >If the circulating supply keeps increasing, it gets harder and harder to push up the price of a token.

    This is generally true, but a more accurate way to put it is that as exchange liquidity for this asset increases prices become more stable.

    >I don’t get what 10b, 20b, 30b he’s referring to. Perhaps market cap

    He’s referring to the market cap of the asset.

    >Is this something that can be calculated or quantified (maybe a ratio, or formula) so one can get a rough idea how hard it is to increase the price of a token at its current state?

    No, it depends on multiple factors other than the current price & circulating supply.

    The point here is that looking at price is pretty meaningless. The price of Ethereum is 14 times lower than the price of Bitcoin, but the market cap of Ethereum is close to half of that of Bitcoin. Comparing market caps is much more useful when trying to understand how a protocol compares to its peers and how much potential for growth it has.

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