Circulating Supply refers to the number of cryptocurrency tokens or coins that are publicly available and circulating in the market. It excludes tokens that are locked, reserved, or not yet released.
The concept of Circulating Supply is crucial for understanding the market value of crypto. It is used, alongside the current price of the cryptocurrency, to calculate its market capitalization. Cryptocurrencies like Bitcoin have a cap on their maximum supply, making their circulating supply a key factor in demand and valuation analyses. Investors and analysts use circulating supply to assess the liquidity and potential price appreciation of a cryptocurrency.
