This is a historical graph of both Total STEEM and Liquid STEEM supply
99,746 STEEM Power Up over the weekend!
Someone is taking advantage of these low prices.
Liquid STEEM is the remaining STEEM that has not been converted into Steem Power. (Orange Line)
- When STEEM is liquid, it can be readily sold and purchased. When locked away in SP, it is not liquid, It takes a significant amount of time to convert it back to a liquid form.
The linear line (dotted line) is a line fit to the Liquid STEEM to show if Liquid STEEM is going up or down over the entire time period.
I created this chart with data that I collected over the last few months.
Why is this graph important?
STEEM is created at a high rate. Currently 8.85% per year. Many Steemians have a concern about STEEM inflation with the high rate of new currency creation. This graph shows since February, more STEEM has been converted to SP than new STEEM creation. This means that even with the high rate of new STEEM creation, the available supply has decreased.
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For a breakdown of how Steemit Rewards system works:
https://steemit.com/steemit/@socky/steemit-rewards-breakdown-a-simplified-explanation-with-illustrations
For a breakdown of Steemit Keys:
https://steemit.com/life/@socky/do-you-understand-your-steemit-keys
Is is good if more people Power Up than purchase from the market??
SP comes directly from rewards or buying STEEM and Power Up.
Sometimes people get STEEM from exchanges.
Sometimes they use BlockTrades.
Sometimes they use the internal market and sell SBD for STEEM.
Sometimes they buy it directly from someone with another currency.
Sometimes they already have STEEM and decide to Power Up.
When more users power up, then it reduces the supply of STEEM. If enough people do it, then the supply can become small and demand will go up for the limited supply.