Here is an article about cryptocurrencies (cryptocurrency), circulating supply, and liquidity:

Understanding Key Metrics for Cryptocurrency Investors

In the world of cryptocurrency trading, investors are often overwhelmed by a multitude of indicators that can make it difficult to assess the overall health and performance of their investments. Among these key indicators, there are a few that provide valuable insight into the current state of the market, especially in terms of outstanding supply and liquidity.

What is Circulation Delivery?

Circulating supply refers to the total amount of a particular cryptocurrency that is still actively circulating in the market. This includes all coins that have been issued through various mechanisms such as ICOs (initial coin offerings), token sales, and on-chain transactions. This does not include coins that are held by whales or institutional investors but are not actively used by users.

The circulating supply of a cryptocurrency is an important indicator for determining overall demand and potential price movement. If the market perceives a particular coin as undervalued, it may be due to a low circulating supply compared to the total available supply (TAS). Conversely, if the circulating supply increases, it often means that more coins are being minted or sold than the market can absorb.

What is liquidity?

Liquidity in the cryptocurrency space refers to the ability to buy and sell a particular coin on exchanges without significant price fluctuations. High liquidity means a sufficient volume of buying and selling activity, allowing investors to easily enter and exit positions at favorable prices.

High liquidity is especially important for traders who rely on market-making models or those who need to sell their coins quickly to profit from price changes. A coin with high liquidity can provide greater flexibility in trading strategies and help mitigate potential losses due to price volatility.

Meaning of CEX (Crypto Exchange)

Cryptocurrency exchanges play a key role in the cryptocurrency ecosystem, providing investors with access to a variety of markets to buy, sell, or trade cryptocurrencies. However, not all exchanges are created equal, especially when it comes to liquidity.

A highly liquid exchange means that there is enough buying and selling activity to absorb price fluctuations, making it easier for traders to enter and exit positions at favorable prices. High liquidity also helps reduce the impact of bias (slightly delayed entry or exit prices) on market performance.

Key Metrics to Track

When evaluating the performance of a cryptocurrency, it is important to consider several key indicators:

• Supply Supply: A decrease in the supply of coins may mean that more coins are being sold than are being minted or issued through ICOs.

• Liquidity: High liquidity is essential for traders and investors who rely on market making models or those who need to sell their coins quickly.

• Market Capitalization: The total value of the cryptocurrency’s open supply, adjusted for the circulating supply.

By following these key indicators and staying informed about market trends, you can make more informed decisions when trading cryptocurrencies.