Circulating Supply

What is circulating supply?

Circulating supply refers to the total number of cryptocurrency coins or tokens that are currently available and actively circulating in the market — meaning they can be traded, used, or held by the public. It excludes coins that are locked, reserved, or otherwise unavailable (such as those held in escrow, burned, or reserved by the project’s team).

This metric is crucial for traders and investors because it helps determine a cryptocurrency’s market capitalization, calculated as:

Market Cap = Current Price × Circulating Supply

A higher circulating supply typically means a larger market cap at the same price level, which can affect liquidity, scarcity, and price potential.

Circulating supply is estimated by subtracting non-circulating tokens (such as those held by foundations, locked in staking contracts, or not yet released) from the total or maximum supply. Accurate figures are tracked by data aggregators, which regularly update supply numbers based on blockchain data and project disclosures.

For traders, understanding circulating supply is key to assessing a coin’s inflation rate, scarcity, and long-term valuation potential — especially when comparing projects with different token release schedules or supply limits.