When the supply of an asset increases while the demand remains constant, a surplus occurs. This surplus happens because there are more units of the asset available than market participants want to build position. As a result, the price of the asset tends to fall. This price decrease is a natural response to the higher supply, as sellers reduce prices to attract buyers and clear the excess positions.

Key Points:
• Increased Supply: More units of the asset are available.
• Constant Demand: The number of market participants want to build position does not change.
• Surplus: The supply exceeds the demand, leading to an excess of the asset.
• Price Decrease: Due to the surplus, sellers lower the price to attract buyers and reduce the excess positions.