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Supply Influx

Definition

Supply influx describes a sudden increase in the available quantity of a cryptocurrency on exchanges or in circulation. This event can occur due to scheduled token unlocks, large holders moving assets to exchanges, or the minting of new tokens as part of a protocol’s issuance schedule. A significant supply influx, particularly if not met with corresponding demand, can exert downward pressure on the asset’s price. It alters the market’s supply-demand dynamics, potentially affecting liquidity and investor sentiment. Monitoring supply influx events is a key aspect of fundamental analysis in digital asset markets.