Circulating Supply
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Introduction to Circulating Supply
When it comes to understanding the value and potential of a cryptocurrency, one key aspect to consider is its circulating supply. This term refers to the number of coins or tokens that are publicly available and circulating in the market. Unlike the total supply, which includes all coins or tokens that exist or will exist, the circulating supply focuses on those currently in active use.
Why Circulating Supply Matters
Circulating supply is crucial for evaluating a cryptocurrency's market cap, which is calculated by multiplying the circulating supply by the current price of each token. This figure helps investors and traders understand the relative size and importance of different cryptocurrencies in the market.