When discussing supply, demand and valuation, please bear in mind the relative size of the ISK and AUR economies:
Starting with the AUR
14.0m in existence, subtracting the
5.3m burned, subtracting the
1.0m Aurarad foundation M1 fund, subtracting the
2.0m coins lost (guess), we arrive at a net estimated
5.7m total M3 supply of AUR.
Now, 5.7m AUR times the current price of 320b gives a market capitalisation of about BTC 1830 ≈ ISK 26m ≈ $226k, which again equals about 0.0012% of the current Icelandic GDP and 0.0015% of the ISK M3.
If you assume 10% of the above AUR M3 amount is in fact liquid M2 (i.e. AUR 570,000), the AUR economy currently constitutes about 0.00015% (1/65,000th) of the Icelandic economy.
If evenly distributed among a population of 330,000 this amounts to about ISK 80 per person ≈ $0.70 ≈ 0.65. You cant buy anything for that in Iceland, in fact its far closer to the price of an empty paper cup than one filled with coffee.
For AUR to become successful as a currency, its valuation simply needs to increase a hundredfold over the next few years just to become 0.2-0.1% of the ISK economy (factoring in a growing proportion of M2/M3). This amounts to each person transacting ISK 8000 ≈ $70 ≈ 65 worth of AUR per year. Any smaller, and youre not really talking about much of an AUR economy at all.
It is therefore little wonder that the supply book is thin at the current prices while the Aurarad Foundation is working hard to provide the tools and regulatory transparency for the AUR economy to thrive. With solid infrastructure, adoption will be able to follow over the next several years. It simply does not work the other way around.