Circulating supply is the amount of coins or tokens that’s been mined or generated. It’s the approximate number that’s currently in public hands and circulating in the market. The amount of coins that is already in circulation + new mined coins which are not in the market is the Total supply.
What is circulating supply in cryptocurrencies?
In the context of cryptocurrencies, the circulating supply is the number of coins or tokens that are circulating in the cryptocurrency market and thus accessible to the public. How is the Circulating Supply determined? Over time, the circulating amount of coins for a certain cryptocurrency can increase or decrease.
What happens if circulating supply = 0?
The less circulating supply the less liquid the market is for that coin. If circulating supply = 0 then there will be no liquidity and the asset (cryptocoin in this case) will be worthless (There is no one willing to buy it or no one willing to sell it so in general the coin is worthless.) Want to trade real markets with zero fees?
What is circulating supply and how does it affect market capitalization?
Circulating supply is generally used to calculate market capitalization given these tokens are those that reflect market demand most directly. Circulating supply does not account for tokens that have been burned.
