What Is Circulating Supply?
Circulating supply is the number of tokens currently available and actively trading in the market. It excludes locked tokens (team/investor vesting), burned tokens, and tokens held in protocol reserves. Circulating supply × price = market capitalization.
How Circulating Supply Works
Most crypto projects launch with a fraction of total supply in circulation. Over time, more tokens enter circulation through vesting schedules, mining/staking rewards, and community distributions. A project might have 100M total supply but only 30M circulating — meaning 70% of supply is yet to hit the market.
Why It Matters for Traders
Circulating supply is critical for accurate valuation. A token at $10 with 10M circulating has a $100M market cap — but if 90M more tokens unlock over the next year, the real valuation question is the $1B fully diluted value. Token unlock schedules are among the most predictable sell-pressure events in crypto, making circulating supply analysis essential for fundamental trading.