How Does Token Supply Affect the Market Price of an ICO Token?

The token supply, specifically the circulating supply versus the total supply, is a primary factor in determining market price, following basic supply and demand principles. A lower circulating supply, all else equal, generally leads to a higher price per token.

Excessive supply without corresponding demand can cause inflation and price depreciation. The supply schedule, including vesting, is key.

Scarcity often drives value.