Circulating supply refers to the number of coins/ tokens available for trading and use by the public at any given moment, excluding those locked or reserved. It is important not to confuse circulating supply with total supply or max supply.
Circulating supply is always lower than a crypto’s total supply since companies typically release only a portion of their tokens into circulation.
Over time, the circulating supply can fluctuate as new coins are minted or existing ones are burned. It plays a critical role in determining a crypto’s market capitalization and the overall size of its economy.
Maximum supply, on the other hand, represents the total number of coins that will ever exist, including those yet to be mined or released in the future.
