What is Circulating Supply?
The number of tokens currently available for trading - the supply that actually affects price, not tokens locked in vesting or reserves.
Circulating supply is the number of tokens that are currently available in the market and in the hands of the public. It excludes locked, reserved, or unreleased tokens.
Why it matters: Market cap = price × circulating supply. If you only look at circulating supply and ignore future unlocks, you might overpay. Always check total and max supply too.
What's NOT in circulating supply:
- Team tokens: Locked in vesting
- Treasury: Project reserves not released
- Staked tokens: Sometimes excluded
- Foundation holdings: For ecosystem development
Key insight: A token with 10% circulating supply will see significant selling pressure as the other 90% unlocks. Compare circulating to total supply before investing.
Why circulating supply matters more than total supply: For price analysis, circulating supply is far more relevant than total or maximum supply because it reflects the tokens actually available for trading right now. A token with a $50 million market cap based on circulating supply might have a fully diluted valuation of $500 million — meaning you are effectively paying ten times more than the headline number suggests. To find accurate circulating supply data, use aggregators like CoinGecko or CoinMarketCap, cross-reference with the project's official tokenomics page, and verify on-chain using block explorers. Be wary of projects that inflate their circulating supply figures by counting locked or unvested tokens, as this misrepresents the true available supply and distorts market cap calculations.
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Examples
- 1.Bitcoin: ~19.5M circulating out of 21M max. 93% of supply is already circulating - minimal future dilution.
- 2.New presale: 5% circulating at launch, 95% locked. Heavy unlock schedule means significant future selling pressure.
Frequently Asked Questions
What is circulating supply?
Why does circulating supply matter for price?
How do I find a token's circulating supply?
Related Terms
More tokenomics Terms
Tokenomics
The economic design of a cryptocurrency - how tokens are created, distributed, and what makes them valuable (or worthless).
Vesting
A schedule that controls when token or share holders can actually sell - the difference between aligned incentives and getting dumped on.
Cliff Period
The initial waiting period before any tokens unlock - your protection against team members cashing out and disappearing on day one.
Token Burn
Permanently destroying tokens to reduce supply - a deflationary mechanism that can increase value for remaining holders.
Maximum Supply
The hard cap on how many tokens will ever exist - the difference between scarce digital gold and infinitely printable funny money.
Token Allocation
How tokens are distributed among team, investors, community, and reserves - the pie chart that shows who really benefits.
Related Articles
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Further Reading
- What Is Circulating Supply vs Fully Diluted Market Cap?
When a token looks "cheap," the first question should be: cheap based on what supply number? Crypto projects often have two valuations at the same time.
- How Do Cryptocurrencies Get Their Value?
Cryptocurrencies can seem mysterious, especially when their prices swing wildly. But behind every Bitcoin, Ethereum, or token is a mix of factors that give it value.
- What Is Market Capitalization in Crypto? A Beginner's Guide
If you are new to cryptocurrency, one of the first terms you'll hear is market capitalization, often called market cap. Understanding market cap is essential for anyone
- How to Read a Crypto Chart - Key Terms Explained
If you are new to cryptocurrency, looking at a crypto chart can feel like reading a foreign language. Candles, lines, colors, and numbers can be overwhelming.
- What Is Tokenomics?
The word tokenomics comes from two ideas: token and economics. It describes how a cryptocurrency works behind the scenes - how tokens are created, dis...
