What is the circulation amount of Cartesi (CTSI) coins?

As of July 2023, Cartesi (CTSI) boasts a circulating supply of approximately 695 million coins, representing a significant portion of its total capped supply of 1 billion CTSI.

Dec 10, 2024 at 11:49 am

Delving into the Circulation Supply of Cartesi (CTSI) Coins

Understanding Coin Circulation

In the realm of blockchain technology, coin circulation plays a pivotal role. It refers to the number of coins that are currently in the hands of the public, excluding any coins held by the project team, advisors, or other reserved funds. This circulating supply has a direct impact on a coin's market capitalization, liquidity, and price dynamics.

Cartesi's Circulation Supply

Cartesi (CTSI) is a cutting-edge blockchain platform that empowers developers to create scalable smart contracts utilizing Linux and off-chain computation. As of July 2023, the circulating supply of CTSI coins stands at approximately 695 million. This represents a substantial portion of the total supply, which is capped at 1 billion CTSI.

Implications of a Circulating Supply

1. Market Capitalization: The circulating supply directly influences Cartesi's market capitalization, which is calculated by multiplying the circulating supply by the current market price of CTSI. A higher circulating supply generally leads to a higher market capitalization, making Cartesi more appealing to institutional investors.
2. Liquidity: Liquidity refers to the ease with which an asset can be bought or sold. A higher circulating supply enhances liquidity, making it simpler for traders to enter and exit their positions, reducing market volatility and stabilizing prices.
3. Price Volatility: The relationship between circulating supply and price volatility is complex. A sudden increase in circulating supply can put downward pressure on prices, while a reduction in circulating supply can contribute to upward price movements. However, numerous other factors, such as market sentiment and developer activity, also impact price volatility.

Role of Circulation Control

Blockchain projects often utilize various mechanisms to control their circulating supply, such as:

• Coin Burns: Periodically destroying a portion of the circulating supply to reduce the total number of coins and enhance scarcity, thereby potentially driving up prices.
• Vesting Schedules: Locking up a certain percentage of coins for a predetermined period, preventing their immediate sale and stabilizing the market.
• Stake-Based Rewards: Encouraging long-term holders by providing rewards to those who stake their coins, effectively decreasing the circulating supply in the market.

Cartesi's Approach to Circulation Control

Cartesi currently does not employ any specific token burn mechanism or vesting schedules. However, it actively participates in governance decisions regarding token distribution and utilization, ensuring responsible management of the circulating supply.

Future Considerations for Circulation Supply

The circulating supply of CTSI is expected to gradually increase as the Cartesi ecosystem matures and attracts more users and developers. The project's future plans and initiatives, such as the launch of new applications and partnerships, could further influence the circulating supply and its impact on Cartesi's overall value.