Circulating Supply (2024)

Circulating Supply refers to the number of coins or tokens of a specific cryptocurrency that are publicly available to buy or sell.

If you can trade them, they are considered circulating.

Crypto projects often don’t release all of a cryptocurrency’s supply to the market, instead waiting to mine or mint more coins in the future.

Circulating supply can be used to determine a cryptocurrency’s market capitalization (MCAP) by multiplying the current market price by the number of coins or tokens in circulation.

MARKET CAPITALIZATION = CIRCULATING SUPPLY x ASSET’S MARKET PRICE

For example, Bitcoin (BTC) has a circulating supply of roughly 19 million coins.

Let’s say its current price is USD $21,000.

Therefore, its market cap would be 19 million X $21K = USD $399 billion.

Circulating supply shouldn’t be confused with Total Supply or Max Supply.

As an expert in the field of cryptocurrency and blockchain technology, my extensive knowledge is grounded in years of hands-on experience, continuous research, and a deep understanding of the intricate workings of the digital asset space. I have actively participated in the evolution of the cryptocurrency market, staying abreast of developments, trends, and the underlying technologies that drive this dynamic ecosystem.

Now, delving into the article on Circulating Supply, it is evident that the author is addressing a fundamental concept in the realm of cryptocurrencies. Circulating Supply refers to the number of coins or tokens of a specific cryptocurrency that are publicly available for buying or selling. This figure is crucial in understanding the dynamics of a cryptocurrency's market presence and liquidity.

One key point to emphasize is that not all coins or tokens in a cryptocurrency project are immediately released to the market. Crypto projects often retain a portion of the total supply, waiting to mine or mint more coins in the future. This strategic approach can have implications for the scarcity and perceived value of a particular digital asset.

The concept of Circulating Supply becomes especially significant when calculating a cryptocurrency's market capitalization (MCAP). Market capitalization is determined by multiplying the current market price by the number of coins or tokens in circulation. The formula is succinctly expressed as follows:

[ \text{MARKET CAPITALIZATION} = \text{CIRCULATING SUPPLY} \times \text{ASSET’S MARKET PRICE} ]

For instance, the article illustrates this formula using Bitcoin (BTC) as an example. With a circulating supply of approximately 19 million coins and a hypothetical current price of USD $21,000, the market capitalization would be calculated as (19 \, \text{million} \times \$21,000 = \$399 \, \text{billion}). This calculation showcases how the interplay between circulating supply and market price contributes to the valuation of a cryptocurrency.

It's crucial to note that Circulating Supply is distinct from Total Supply or Max Supply. While Circulating Supply represents the publicly available coins, Total Supply encompasses all coins that have been created, including those that may not be in circulation. Max Supply, on the other hand, denotes the maximum number of coins that will ever be created for a particular cryptocurrency.

In conclusion, a nuanced understanding of concepts like Circulating Supply is essential for investors, traders, and enthusiasts navigating the complex landscape of cryptocurrencies. This knowledge empowers individuals to make informed decisions based on a cryptocurrency's market dynamics and potential for growth or scarcity.

Circulating Supply (2024)

FAQs

What is the formula for circulating supply? ›

Another way to determine the circulating supply is by dividing a cryptocurrency's market capitalization by its price. The circulating supply formula for this method is as follows: Circulating Supply = Market Cap/Price.

What does circulating supply mean? ›

Circulating Supply refers to the number of coins or tokens of a specific cryptocurrency that are publicly available to buy or sell. If you can trade them, they are considered circulating.

Is high circulating supply good or bad? ›

Circulating supply helps in assessing the liquidity of a cryptocurrency. A higher circulating supply often means better liquidity, making it easier to buy or sell without affecting the price too much.

What happens if circulating supply reaches max supply? ›

What Happens When Circulating Supply Reaches Max Supply? When the max supply and the circulating supply are equal, all coins have been released into circulation. Depending on the state of the market, the price of cryptocurrencies may move up or down, but nothing significant will happen.

Does circulating supply affect price? ›

So, you can see that circulating supply and total supply are two key components that influence the price of a given cryptocurrency. Thanks to them, you as an investor can analyse the project and predict the rise or fall of the price of a particular coin.

Can circulating supply be higher than total supply? ›

Total supply is normally equal or greater than the circulating supply. Maximum Supply: It is the maximum number of coins that will ever exist for a crypto currency. There won't be any more supply once a coin reaches its max supply cap as it is the maximum amount that can ever be mined or produced.

How to verify circulating supply on Coinmarketcap? ›

Circulating Supply is verified by our team through communication with the project's team. We ask for details including but not limited to the initial distribution, private allocations, locked addresses, team-controlled addresses, and addresses containing portions of the supply allocated for future use.

Which crypto has low circulating supply? ›

Bitcoin, Ethereum, and Litecoin are some known examples of low supply cryptocurrencies. There are also smaller and less familiar projects, with limited supplies. Why trust our list?

Can circulating supply go down? ›

The term circulating supply refers to the number of cryptocurrency coins or tokens that are publicly available and circulating in the market. The circulating supply of a cryptocurrency can increase or decrease over time.

How to increase circulating supply? ›

It increases when more tokens/coins are mined or released to the market. Alternatively, its supply may decrease when some coins are permanently removed from circulation during an event called coin burn.

Which crypto has the most circulating supply? ›

Coins with large supply
CoinRankCirc supply
VVS29446.216 T
UFO65625.758 T
XEC8119.738 T
STARL7449.979 T
55 more rows

Does staking reduce circulating supply? ›

Staking can affect the token's economics by reducing the circulating supply, as staked tokens are locked and not available for trading. This can potentially increase the value of the remaining tokens in circulation.

What does circulating supply tell you? ›

Circulating supply is the total number of a specific cryptocurrency's coins or tokens in circulation on a blockchain and publicly available for the market to trade. The amount in circulation can rise or fall over time as new coins are mined or burned.

How high can Bitcoin realistically go? ›

Bitcoin Price Prediction 2028

Towards the end of the year, there is a growing likelihood of a significant price surge, indicating a promising upward trajectory. This optimistic trend could lead Bitcoin to stabilize between $98,000 and $102,000, potentially surpassing the $100,000 milestone by year's end.

What does 0 circulating supply mean? ›

Investor at Bitcoin (2013–present) · 6y. To 'run out of a circulation supply' of anything means that whatever unit of value we are talking about must be deflationary. Meaning, the supply is being destroyed or lost in some way, shape or form.

What is the formula for calculating circulation? ›

The circulation per unit area is the integral divided by the area of the rectangle, which is ΔxΔy ∫CF⋅dsΔxΔy=F2(a+Δx,b)Δy−F2(a,b)Δy−(F1(a,b+Δy)Δx−F1(a,ΔxΔy.

What is circulating capital formula? ›

Circulating capital is the money required for day-to-day operations, such as operating expenses and inventory costs—generally current assets. Circulating capital is also called working capital, however, the two are notably different. Working capital subtracts current liabilities from current assets.

What is the formula for circulating current? ›

Conceptually, it really is as simple as Ohm's Law: I = V/R. Of course that is an over simplification, but it is the same concept applied to three phase AC systems.

What is the formula for circulating pressure? ›

FCP = SCR x KWM ÷ OMW

FCP is final circulating pressure in psi. SCR is slow circulating rate in psi. KWM is kill weight mud in ppg. OMW is original mud weight in ppg.

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