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Circulating Supply

Give me the basics

Circulating supply is the total amount of a cryptocurrency that is currently available and circulating in the market. This includes all coins or tokens that have been mined, created, or released into circulation. It excludes coins or tokens that are locked or held by the cryptocurrency project or team. The circulating supply is important because it affects the price and market capitalization of the cryptocurrency.

In-depth explanation

In the world of cryptocurrencies, circulating supply is a term used to describe the total amount of a cryptocurrency that is currently available and circulating in the market. In this article, we will explore the basics of circulating supply and its importance in the cryptocurrency market.

Circulating supply refers to the total number of coins or tokens of a particular cryptocurrency that have been mined, created, or released into circulation. It excludes coins or tokens that are locked or held by the cryptocurrency project or team. The circulating supply is important because it affects the price and market capitalization of the cryptocurrency.

Market capitalization is calculated by multiplying the current price of the cryptocurrency by the circulating supply. This means that if the circulating supply of a cryptocurrency is large, the market capitalization will also be large, which can attract more investors to the cryptocurrency.

Circulating supply can also impact the price of a cryptocurrency. If the circulating supply is low and demand for the cryptocurrency is high, the price is likely to increase. Conversely, if the circulating supply is high and demand is low, the price is likely to decrease.

It is important to note that circulating supply is not the same as total supply. Total supply refers to the total number of coins or tokens that will be created for the cryptocurrency, while circulating supply refers to the coins or tokens that are currently available and in circulation.

In conclusion, circulating supply is a crucial term used in the cryptocurrency market to describe the total amount of a cryptocurrency that is currently available and circulating in the market. It impacts the market capitalization and price of the cryptocurrency, and it is important for investors to consider when making investment decisions. By understanding circulating supply, investors can make more informed decisions and potentially profit from the cryptocurrency market.