Definition ∞ Temporary supply growth refers to a transient increase in the circulating quantity of a digital asset, which is not indicative of a permanent change in its long-term issuance schedule. This phenomenon can result from specific events, such as unlocked vesting schedules or the distribution of airdrops. Such growth is typically absorbed by the market over time.
Context ∞ Cryptocurrency news sometimes reports on instances of temporary supply growth, which can cause short-term price volatility. While not altering the fundamental monetary policy of an asset, these temporary increases require careful market analysis. Investors and analysts monitor these events to anticipate potential selling pressure or market corrections. Understanding the transient nature of such supply increases is key to accurate market assessment.
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