Is circulating supply/maximum supply an indicator of price potential for microcap coins?

[jettester97]

So I am looking at two coins both with a market cap of between 5 & 10 million.

They are both deflationary in that they have a maximum supply.

However one has 3% of its max supply of coins in circulation and another has 99% of its coins in circulation.

I would imagine in the long term that the coin with 99% of its coins already in circulation has less room to move up in price, especially at such a low market cap.

However on the flipside for the coin with 3% there is more chance for a decrease in price if all the coins are dumped on the market all at once due to inflation/oversupply.

Does anyone have any thoughts on how to approach this metric as it's interesting trying to find some middle ground i.e. is 45% good? 50%? 60%?

I don't know,
over to you guys to educate me

 

[Sotherefore]

I don't really know about you , but personally I believe this really play a very important role in The success of a particular cryptocurrency. Obviously when the price of a particular cryptocurrency are predicted to be valuable in the future , the total and the circulating supply of the coin must always be put into consideration you can't just see a reasonable cryptocurrency having billions and billions of circulating supply . That won't really take the cryptocurrency to anywhere as I understand.

We have to put so many things into consideration here, ok if we are to look at the price of bitcoins and its overall circulating supply , we will come to find out that bitcoins is not even up to 10 million circulating supply and that is just one of the reason the price of bitcoins is really high.

For example if bitcoins has 1 million supply and maybe it automatically changes to 2 million, then we have to understand that the price of bitcoins will be half of the value it is today.

Whenever you are interested to invest in any cryptocurrency , the most important thing you have to put into consideration is the circulating supply first and the maximum.