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What Is Circulating Supply?

Circulating supply, a key metric, indicates the number of cryptocurrency units actively traded, impacting market capitalization, liquidity, and scarcity.

Oct 28, 2024 at 12:11 am

What is Circulating Supply?

1. Definition

Circulating supply refers to the number of units of a cryptocurrency that are currently in active circulation. It excludes tokens that have been lost, destroyed, reserved for future issuance or are held by long-term investors.

2. Importance

Circulating supply is a key metric for:

  • Market capitalization: The total value of a cryptocurrency is calculated by multiplying the circulating supply by the current price.
  • Trading volume: High circulating supply generally means greater liquidity and a more actively traded asset.
  • Scarcity: A lower circulating supply can indicate scarcity and potentially higher demand, leading to price appreciation.

3. Factors Affecting Circulating Supply

  • Issuance: New tokens can be issued, increasing the circulating supply.
  • Burning: Existing tokens can be permanently removed from circulation, decreasing the supply.
  • Staking: Tokens held in a staking mechanism may be temporarily removed from circulation, but still counted towards the total supply.
  • Lost or destroyed tokens: Tokens can be lost or destroyed, permanently reducing the circulating supply.

4. How to Find Circulating Supply

Circulating supply data can be found on:

  • Exchange market data: Top cryptocurrency exchanges like OKX, Binance, Coinbase, and Kraken provide real-time circulating supply information.
  • Third-party websites: Websites like CoinMarketCap and CoinGecko aggregate circulating supply data from multiple sources.
  • Directly from the project: Cryptocurrency projects often release their own circulating supply data on their websites or through official announcements.

5. Examples

  • Bitcoin (BTC): Circulating supply ~ 19.24 million BTC
  • Ethereum (ETH): Circulating supply ~ 118.52 million ETH
  • Binance Coin (BNB): Circulating supply ~ 166.55 million BNB

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

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