Circulating Supply

Circulating supply refers to the total number of coins or tokens of a cryptocurrency that are publicly available and actively traded in the market. This metric is crucial for understanding a crypto currency’s liquidity, as it excludes coins that are locked, reserved, or not yet released. It’s an essential figure used to gauge how much of the asset is accessible to traders and investors.

The circulating supply also impacts various financial metrics, such as market capitalization, which is calculated by multiplying the circulating supply by the current market price. A higher circulating supply can lead to higher liquidity, reducing volatility, while a lower supply might lead to increased price fluctuations. Understanding circulating supply helps investors assess the market dynamics of a given cryptocurrency.