Supply Revaluation

Definition ∞ Supply revaluation refers to a reassessment or adjustment of the total circulating quantity or economic value of a digital asset. This process can occur due to changes in a protocol’s monetary policy, such as scheduled token burns, inflation adjustments, or new issuance events. It impacts the perceived scarcity and overall market capitalization of a cryptocurrency. Accurate supply revaluation is essential for investors and analysts to correctly assess an asset’s fundamental value and future price potential.
Context ∞ News in the cryptocurrency space frequently discusses events that trigger supply revaluation, such as major protocol upgrades or changes to tokenomics. These events can significantly influence market sentiment and price action. Understanding the mechanisms behind supply revaluation is critical for comprehending the long-term economic models of various digital assets.