Circulating Supply

What Is Circulating Supply?

Circulating supply is the total amount of a cryptocurrency that is currently available and circulating in the market. It refers to coins that are not locked, reserved or otherwise unavailable for trading on public exchanges. This number can be found by subtracting any coins held in reserve from the total supply of a given coin. The circulating supply is an important metric when it comes to understanding how much liquidity there is in a particular asset, as well as its potential price movements over time.

The circulating supply also helps investors determine whether they should invest in a certain cryptocurrency or not. For example, if there’s only a small amount of tokens available for circulation compared to other cryptocurrencies with larger supplies, then this could indicate higher demand and potentially greater returns on investment due to scarcity value. On the other hand, if there’s too much token availability relative to demand then prices may remain low due to lack of interest from buyers and sellers alike. Therefore, it’s important for investors to understand both the current circulating supply and future projections before investing their money into any digital currency project.

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