What is the meaning of circulating supply in the context of cryptocurrency?

3 answers

• Cherlyn BancudJun 24, 2024 · a year ago
  Circulating supply in cryptocurrency refers to the total number of coins or tokens that are currently in circulation and available to the public. It represents the portion of the total supply that is actively being traded or used by individuals and entities. It does not include coins or tokens that are locked, reserved, or held by the project team or other entities. The circulating supply is an important metric as it helps determine the market capitalization and liquidity of a cryptocurrency. It can also impact the price and value of a coin or token, as a larger circulating supply may indicate a higher level of inflation or dilution of value.
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• Mohamed RothSep 08, 2020 · 5 years ago
  Sure thing! Circulating supply in the context of cryptocurrency refers to the number of coins or tokens that are currently in circulation and available for trading. It excludes coins or tokens that are locked or held by the project team or other entities. The circulating supply is an important factor to consider when evaluating a cryptocurrency as it can affect its market value and liquidity. A larger circulating supply may indicate a higher level of supply and potentially lower demand, which can impact the price of the cryptocurrency. It's important to note that circulating supply can change over time as new coins or tokens are minted or released, or existing ones are burned or locked.
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• CEM_88Mar 04, 2025 · 8 months ago
  Ah, circulating supply, a term that gets thrown around a lot in the world of cryptocurrency. So, what does it actually mean? Well, it's the total number of coins or tokens that are currently in circulation and available for trading. It's like the money in your wallet that you can use to buy stuff. But here's the catch - it doesn't include the coins or tokens that are locked up or held by the project team or other entities. So, it's the part of the total supply that's out there in the wild, being bought, sold, and traded. Why does it matter? Well, the circulating supply can affect the price and value of a cryptocurrency. If there's a huge supply out there, it might be harder for the price to go up because there's more of it to go around. On the other hand, if there's a limited supply, it could create more demand and drive the price higher. So, keep an eye on the circulating supply when you're checking out a cryptocurrency.
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