THE ERA OF QUADRILLION SUPPLY TOKENS: WILL THEY SURVIVE THE BEAR MARKET?

Within the cryptocurrency market, there are several coins / tokens that have different circulation supply. Of these, there are cryptocurrencies that have a quadrillion supply. These are our focus in this article. One of the examples of tokens that have quadrillion supply is the Shiba Inu coin whose worth is roughly around $0.00000786 per unit of it (as at the time of writing this content). Bitcoin can go no more than 21 million in supply. What this implies is that the Shiba coin which has a supply of one quadrillion can hardly become scarce.

Quadrillion supply tokens already have the advantage of being abundant in supply thereby making it easier for the market forces of demand and supply to fix the price of the token below thereby making it more attractive to the populace.

A bear market is when a market experiences prolonged decline in prices. It typically describes a condition in which the prices of securities fall 20% or more from recent highs amid widespread pessimism and negative investor sentiments. Bear markets can be cyclical or longer-term. While the cyclical typically lasts for several weeks or a couple of months, longer-term bear markets can last for several years or even decades. The fundamental notions of “bull” and “bear” trends originating from the stock exchange have penetrated the cryptocurrency market and represent the tactics of animal attacks in wild nature. Should you ever confuse the two, you should remember that bears raise their paws to fight while bulls just raise their horns and continue moving. Bear means the market prices have fallen, while bull means the market prices have risen.

Bear markets are often caused by slowing economies — this means economies that have low employment, disposable income, business profits, or, generally, weak productivity. Essentially, all these indices show that there are little or no available funds to be invested. The bull and bear market are all avenues for making money in the Cryptocurrency market. While taking advantage of a bull market is a bit straightforward and easy, taking advantage of a bear market is a little more complicated. Investors will often make use of a strategy called short-selling. This strategy involves selling borrowed shares in the hopes of repurchasing them at a lower price. However, this is an extremely risky trade and it should only be done by experienced traders.

What is market capitalization?

Market Capitalization is one way to rank the relative size of a cryptocurrency. Within the blockchain industry, the term market capitalization (or market cap) refers to a metric that measures the relative size of a cryptocurrency. It is calculated by multiplying the current market price of a particular coin or token with the total number of coins in circulation. This concept serves functions among others such as ensuring that coins with higher market capitalization value survive a number of blows to the market. It has been found that Circulating Supply is a much better metric for determining the market capitalization. Coins that are locked, reserved, or not able to be sold on the public market are coins that can’t affect the price and thus should not be allowed to affect the market capitalization as well. The method of using the Circulating Supply is analogous to the method of using public float for determining the market capitalization of companies in traditional investing.

Coin market capitalization is therefore the best method for us to use to identify if the quadrillion supply tokens can survive the bear market. This is because it seems to be the most significant index in ranking tokens in cryptocurrency. Market cap is calculated by multiplying the amount of a token in circulation with its current price. This goes to show that any amount in supply or the unit price of the token in circulation that increases, brings about an increase in the market cap of that coin. Accordingly, quadrillion supply tokens therefore stand a greater chance of surviving the bear market because of the higher market capitalization value they have which is as a result of the high supply of tokens.

Quadrillion supply tokens are those tokens which have their supply in quadrillion amounts. These coins usually have a unique characteristic of not going scarce because of the high supply.

Bear market happens when there is significant plummeting in the value of prices of tokens due to some unfavorable economic policies or negative situations that brings about loss of much disposable income in circulation that can be used for investment purposes.

Market capitalization is the index used to rank tokens in the cryptocurrency market. This ranking does a number of things such as giving an indication of tokens that might survive a bearish market. Accordingly, we have seen that quadrillion supply tokens have a higher chance of surviving the bear market than any other token.

You can stay connected with your favorite cryptocurrencies by tracking them via CoinMarketCap!

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Helen IMAH

Helen IMAH

I’m a TECH Lover, Blockchain Enthusiast, Strategic Digital Marketer, Content Creator, Crypto Trader & Data Analyst…