Circulating Supply Definition
Circulating Supply refers to the total number of a specific cryptocurrency or token that is publicly available and circulating in the market outside of the owner’s or company’s control.
Circulating Supply Key Points
- Circulating supply is the amount of coins or tokens that are available to the public for buying, selling or trading.
- The circulating supply does not include coins or tokens held by the project team or kept in a reserve.
- A lower circulating supply can lead to higher price of the token, provided the demand is high
What is Circulating Supply?
Circulating Supply is an important metric in cryptocurrencies. It represents the total number of coins or tokens that are currently available to the public for trading or purchasing, it is an indicator of the coin’s market capitalization.
Why is Circulating Supply Important?
The circulating supply of a cryptocurrency is crucial in understanding its market cap and its current value. Knowing the circulating supply of a cryptocurrency can help investors make more informed decisions about investing in a particular coin or token.
Where is the Circulating Supply Measured?
The circulating supply of a cryptocurrency is typically tracked and reported by cryptocurrency market cap websites such as CoinMarketCap, CoinGecko, and others. These platforms display the circulating supply as part of each coin or token’s overall profile on their website.
When does Circulating Supply Change?
The circulating supply can change over time. This happens when there are changes in the buying, selling, trading, mining or even factors like project teams releasing their own reserve holds into the market, defective tokens being burned or tokens being locked for a period of time.
How is Circulating Supply Calculated?
Circulating supply is typically calculated by subtracting the amount of coins or tokens held by the project’s team or locked in a reserve from the total supply of the coin or token. In some cases, tokens that are burned or lost are also subtracted. This is then reported as the circulating supply to the public.
