Circulating Supply represents the total quantity of a cryptocurrency or token that is currently in circulation and available for trading or use within the market. It excludes any portion of the total supply that is locked, reserved, or otherwise not actively traded or accessible. Circulating Supply is a crucial metric for assessing the liquidity and market dynamics of a cryptocurrency or token, as it directly impacts factors such as market capitalization, price stability, and trading volume. The Circulating Supply can vary over time due to factors such as mining rewards, token burns, inflationary mechanisms, and token distribution events. It is often reported alongside other supply-related metrics, such as Total Supply and Max Supply, to provide a comprehensive overview of the asset's issuance and distribution. Understanding the Circulating Supply is essential for investors, traders, and analysts to gauge supply-demand dynamics, assess market trends, and make informed investment decisions within the cryptocurrency space.
