Crypto tokenomics is the study of the economic principles and mechanisms that drive the behavior of cryptocurrencies. One of the key aspects of tokenomics is the supply of tokens, which can be represented by various metrics such as circulating supply, total supply, and max supply.

Circulating supply refers to the number of tokens that are currently in circulation, meaning they are available for trading on the market. This number is often less than the total supply, which is the total number of tokens that will ever exist.

Max supply, on the other hand, is the maximum number of tokens that can exist at any given time. This number is sometimes limited by the underlying

blockchain protocol, and sometimes by the token issuer.

Market cap is a metric that is often used to determine the value of a cryptocurrency. It is calculated by multiplying the circulating supply of tokens by the current market price. For example, if a cryptocurrency has a circulating supply of 100 million tokens and a market price of $1 per token, its market cap would be $100 million.

Fully diluted valuation, also known as fully diluted market cap, is a variation of market cap that takes into account the potential increase in the supply of tokens. For example, if a cryptocurrency has a circulating supply of 100 million tokens and a max supply of 200 million tokens, its fully diluted valuation would be calculated by multiplying the max supply by the current market price, rather than the circulating supply.

All of these metrics are important in determining the price of a cryptocurrency. The market cap and fully diluted valuation give an indication of the overall value of a cryptocurrency, while the circulating and total supply metrics provide insight into the potential for price appreciation or depreciation based on the availability of tokens.

In conclusion, tokenomics is a crucial aspect of the cryptocurrency market and understanding the various supply metrics is essential for making informed investment decisions. By analyzing the circulating, total, and max supply, as well as the market cap and fully diluted valuation, investors can gain a better understanding of the potential value of a cryptocurrency and make more informed investment decisions.

PS. Knowing what you know now:

Do you still believe SHIB will reach $1? 

You can find tokenomics information in the white paper of any project or by visiting crypto tracking websites like coingecko and coinmarketcap for free.