What is the difference between total supply and circulating supply?

Between total supply and circulating supply, traders pay more attention to circulating supply, as the coins that are not available for public trading, are not taken into account in the calculation of the market cap. Also, circulating supply has higher importance as the magnitude of the influx of coins could affect the price of the asset.

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 is the importance of circulating supply?

Also, circulating supply has higher importance as the magnitude of the influx of coins could affect the price of the asset. All in all, both metrics are hugely important.

Is circulating supply a good metric for determining market capitalization?

We have found that Circulating Supply is a much better metric than Total Supply for determining the market capitalization. The method of using the Circulating Supply is analogous to the method of using public float to determine the market capitalization of companies in traditional investing.