Rethinking Cryptocurrency Supply Concerns: Focus on Liquidity Instead of Caps

I believe that the ongoing debate about an excessive supply of cryptocurrencies is largely outdated and unproductive. In my view, cryptocurrencies like Dogecoin with an 80 billion supply, Kaspa with 25 billion, XRP with 100 billion, and Cronos with 25 billion— which recently voted to add an additional 75 billion— demonstrate that supply levels are acceptable when considering the liquidity and investment support behind each project. The focus should instead be on the amount of liquidity invested into these projects to gauge their viability and potential growth. The value and longevity of a cryptocurrency are more closely tied to the liquidity and community backing it receives rather than just its total supply. Projects with high supply can still have strong market presence if they attract sufficient investor interest and liquidity. Therefore, I think the core issue isn't the supply cap but the level of liquidity, trading volume, and user engagement. In decision-making, investors should prioritize the liquidity inflow and technological development of projects rather than fixate on their supply numbers. This perspective shifts the focus from supply caps to the actual market dynamics which influence a cryptocurrency's stability and growth potential. Recognizing this can help make more informed investment choices and facilitate better long-term strategy development.