Seeking advice: Is circulating supply divided by 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

 

[GrandMasterDash]

I have no idea, but I can tell you over a two year period, nano hodlers were better off than dash hodlers. Nano has all it's supply out there already.

 

[vevoy]

Hi, did you find a solution to this?

 

[Greaver79]

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. Recently I have implemented a payment gateway from paykassma in my business, with the help of which I have brought payments to a new level, making them more reliable and convenient. I recommend trying it.

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

You're right—circulating supply significantly impacts price potential and risk.

99% Circulated Coin​

• Pros: Minimal inflation risk, more price stability.
• Cons: Limited upside; relies heavily on demand growth.

3% Circulated Coin​

• Pros: Higher growth potential if demand outpaces supply.
• Cons: Inflation risk if tokens flood the market.

Key Factors​

Look at the token release schedule, demand drivers, and team transparency. A middle ground (e.g., 50–60% circulated) often balances growth potential and inflation control. Combine this metric with fundamentals for better insights.