What is Circulating Supply?

Circulating supply refers to the number of cryptocurrency tokens that are actively available in the market—held by the public and available for trading. It excludes locked tokens, team holdings under vesting, and coins that haven’t been mined or released yet.

Supply Types Explained

Circulating Supply

  • Currently available in the market
  • Can be freely traded
  • Used for market cap calculation

Total Supply

  • All coins that currently exist
  • Includes locked and unvested tokens
  • Excludes burned tokens

Maximum Supply

  • Maximum that will ever exist
  • Some coins have no max (inflationary)
  • Bitcoin: 21 million

Why Circulating Supply Matters

Market Cap Calculation

Market Cap = Circulating Supply × Current Price

Example:

  • Price: $100
  • Circulating Supply: 10 million
  • Market Cap: $1 billion

Token Dilution Risk

If circulating supply increases significantly:

  • More tokens compete for same demand
  • Price may decrease
  • Common with token unlocks and vesting schedules

Analyzing Circulating Supply

Questions to ask:

  1. What % of total supply is circulating?
  2. When do locked tokens unlock?
  3. Is there a vesting schedule?
  4. What’s the inflation rate?

Red Flags

  • Very low % circulating (< 10%)
  • Large upcoming unlocks
  • Team holds majority of supply
  • No transparency about supply

Checking Supply Data

View circulating supply on:

Always research tokenomics before investing.