Algorithm

Cryptos:

2,117

Exchanges:

10

Marketcap:

$2,120,510,893,508

Volume 24h:

$49,881,013,638

Circulating Supply

What does Circulating Supply mean in crypto terms?

Circulating supply refers to the total number of coins or tokens of a cryptocurrency that are currently in public circulation and available for trading or transactions. It represents the portion of the total supply that is actively being used by investors, traders, and users in the market. Every cryptocurrency has a predetermined total supply, which is the maximum number of coins or tokens that will ever exist for that particular cryptocurrency. However, not all of these coins or tokens are immediately available for circulation. Some may be locked or reserved for specific purposes such as development, team allocations, or future releases.

Circulating supply is calculated by deducting the locked or reserved tokens from the total supply. This calculation provides an estimate of the number of coins or tokens that are freely circulating and accessible to the public. The circulating supply metric is important because it helps determine the market capitalization of a cryptocurrency. Market capitalization is calculated by multiplying the price per coin or token by the circulating supply. It provides a measure of the overall value and size of a cryptocurrency in the market.

It's worth noting that the circulating supply of a cryptocurrency can change over time. New coins or tokens may be released into circulation, locked tokens may become unlocked, or there may be mechanisms such as token burning or minting that affect the circulating supply.

In summary, circulating supply refers to the total number of coins or tokens of a cryptocurrency that are actively circulating and available for trading or transactions. It represents the portion of the total supply that is not locked or reserved. The circulating supply is an important metric for determining the market capitalization and overall value of a cryptocurrency.

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