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.
Context ∞ News frequently reports on anticipated or actual supply influx events for various digital assets, often providing analysis of their potential impact on market prices. Traders and investors closely watch these events, as they can signal periods of increased volatility or price adjustments. Understanding the mechanisms and timing of supply influx is crucial for forecasting market behavior and making informed investment decisions.
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