Circulating Supply Definition - Glossary

Circulating Supply is the total amount of a cryptocurrency currently available in the market for trading.

Circulating Supply is the total quantity of a cryptocurrency that is actively available for trading on the market. It excludes coins that are locked, reserved, or otherwise unavailable to the public. Understanding circulating supply helps determine a cryptocurrency's market capitalization, which is calculated by multiplying the current price by the circulating supply. A lower circulating supply can sometimes lead to higher price volatility. By contrast, a higher supply might indicate more stability. Investors often consider circulating supply to assess the scarcity and potential value of a cryptocurrency.