Understanding Supply Dynamics
Supply dynamics measure the relationship between circulating, total, and maximum supply — key to understanding dilution risk.
What are Supply Dynamics?
Supply dynamics analyze how much of a token's total supply is currently circulating. If only 30% of tokens are in circulation, the remaining 70% could be released over time, diluting existing holders.
Why It Matters
Bitcoin has ~93% of its max supply circulating — minimal dilution risk. A new DeFi token might have only 20% circulating with massive unlock schedules ahead. This directly impacts long-term price potential.
How We Use It
Supply Dynamics carries 16% of the Value Score — raised because the circulating-to-total ratio is one of the few inputs that does not move with price. Higher ratios score better: they indicate less future dilution pressure.
> 90% circulating
Low Dilution Risk
< 30% circulating
High Dilution Risk
Current Top 5 Coins by Supply Dynamics
How our algorithm currently scores the leading crypto assets on the "Supply Dynamics" component. Higher = stronger undervaluation signal on this single dimension.
Worked Example
Bitcoin (BTC) leads with a Supply Dynamics value of 85/100. On this single dimension, Bitcoin currently shows a clear undervaluation signal. Click Bitcoin above to see the full score breakdown across all 10 metrics.