Circulating supply is the number of coins or tokens of a given cryptocurrency that are publicly available and actively circulating in the market right now — distinct from total supply (everything that currently exists, including locked or reserved tokens) and max supply (the hard cap that will ever exist, if one is defined).
Circulating supply is the figure used to calculate market capitalization, so its accuracy matters for comparing assets fairly. Tokens with large amounts locked in team, investor, or foundation allocations can see circulating supply rise substantially over time as those tokens unlock and enter the market, which can pressure price independent of demand changes.
When evaluating a token, it's worth checking circulating supply against total and max supply to understand how much future dilution is scheduled. This is general information, not financial advice.
Key takeaways
- Circulating supply counts only the coins or tokens publicly available and actively trading right now, distinct from total supply (everything in existence) and max supply (the hard cap, if one exists).
- Circulating supply is the figure multiplied by price to calculate market capitalization, so an inaccurate or misleading circulating supply figure can distort comparisons between different crypto assets.
- Tokens with large team, investor, or foundation allocations can see circulating supply rise sharply as those holdings unlock, and that added supply can pressure prices independent of any change in demand.
Circulating Supply — frequently asked questions
What is the difference between circulating supply and total supply?
Circulating supply is the amount of a token actively available and trading in the market right now. Total supply includes everything currently in existence, including tokens that are locked, reserved, or not yet released.
Why does circulating supply matter for market cap?
Market capitalization is calculated by multiplying circulating supply by current price. Because circulating supply is one input, an inaccurate or misleading circulating supply figure can make an asset's market cap look larger or smaller than it really is.
Can circulating supply increase suddenly?
Yes. Many tokens have scheduled unlocks where team, investor, or foundation allocations enter circulation over time. Comparing circulating supply against total and max supply can help gauge how much future dilution is scheduled.
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