Circulating supply refers to the total number of coins or tokens that are currently in circulation and available to the public. This figure excludes any coins that are locked up or not currently available for trading.
In cryptocurrency, understanding the circulating supply of a particular coin or token is important for evaluating its market value and potential for growth. A high circulating supply could result in lower individual coin prices, whereas a lower circulating supply may drive up prices due to limited availability.
Investors often consider the circulating supply in conjunction with other factors such as total supply and market cap when making investment decisions. By analyzing these metrics, investors can gauge the level of demand for a particular cryptocurrency and anticipate potential price fluctuations.
Overall, circulating supply plays a key role in determining the market dynamics of a cryptocurrency and is an essential metric for assessing its overall value in the market.
