50% more whales own Dogecoin, what’s next for DOGE

The developer or creator of each cryptocurrency decides the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted through mining, staking or other mechanisms. This is defined by the underlying blockchain technology algorithm. Since its inception, a total of 19,445,656 BTC have been mined, which is the circulating supply of Bitcoin. On the other hand, the circulating supply can also be reduced by actions such as burning tokens or erroneously sending assets to the addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a particular asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is over $570 billion, which is the result of more than 19 million BTC in circulation multiplied by the price of Bitcoin around $29,600.

Trading volume refers to the total number of tokens for a particular asset that have been traded or exchanged between buyers and sellers during set trading hours, for example 24 hours. It is used to measure market sentiment, this metric combines all volumes from centralized exchanges and decentralized exchanges. Increasing trading volume often denotes demand for a particular asset as more people buy and sell the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure that perpetual contract prices match spot markets. It defines a mechanism through exchanges to ensure that future prices and periodic payments of indexed prices converge regularly. When the funding rate is positive, the perpetual contract price is higher than the mark price. This means that traders who are bullish and have opened long positions pay traders who are short. On the other hand, a negative funding rate means that perpetual prices are below the reference price, and thus traders with short positions pay traders who opened long positions.