What it is
Circulating supply refers to the quantity of a cryptocurrency's tokens or coins that are currently accessible and actively being traded by the general public. This figure excludes tokens that are locked up in smart contracts, held by the development team, or otherwise not yet released into the market. It is a dynamic number that can change as new tokens are minted, released from vesting schedules, or burned.
This metric is crucial for calculating a cryptocurrency's market capitalization, which is derived by multiplying the circulating supply by the current market price of a single token. A growing circulating supply, especially if not met by increased demand, can lead to price dilution. Conversely, a decrease in circulating supply, often through token burns, can support price appreciation by reducing available tokens.
Why it matters
Understanding circulating supply is essential for calculating market cap and assessing potential price movements due to changes in token availability.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice