The circulating supply has changed. How can you avoid mistaking a change in supply for a change in price? Start by recording price and quantity separately: price is approximately equal to market capitalization divided by circulating supply. A change in circulating supply changes the denominator; it does not mean the price itself has changed by the same amount.
Suppose an asset’s market capitalization remains at 100 million USDT while its circulating supply increases from 10 million tokens to 20 million. Before the change, each token is worth about 10 USDT; afterward, about 5 USDT. This is just a straightforward educational calculation, not a real-world quote. In reality, market capitalization may also change at the same time, so you can’t conclude that the price must fall just because supply has increased.
When you see “circulating supply increased,” note down the circulating supply, price, and market capitalization at the same point in time, then recalculate the price before and after. If market capitalization data is unavailable, just record “quantity changed”—don’t write it up as a price trend.
Suppose an asset’s market capitalization remains at 100 million USDT while its circulating supply increases from 10 million tokens to 20 million. Before the change, each token is worth about 10 USDT; afterward, about 5 USDT. This is just a straightforward educational calculation, not a real-world quote. In reality, market capitalization may also change at the same time, so you can’t conclude that the price must fall just because supply has increased.
When you see “circulating supply increased,” note down the circulating supply, price, and market capitalization at the same point in time, then recalculate the price before and after. If market capitalization data is unavailable, just record “quantity changed”—don’t write it up as a price trend.