The number of crypto coins or tokens that are publicly available and circulating in the market is referred to as the circulating supply. A crypto’s circulating supply might grow or shrink over time. For example, until the maximum number of 21 million coins is reached, the circulating supply of Bitcoin will progressively expand. The gradual increase is due to the mining process, which produces new coins every 10 minutes on average. Coin burn events, such as those held by Binance, reduce the circulating supply by permanently deleting coins from the market.
The circulating supply is the number of coins available to the general public. The total supply is used to calculate the number of coins in circulation, which is equal to the number of coins issued minus the number of coins burnt. The entire supply is equal to the sum of the circulating supply and the coins held in escrow.
The maximum supply refers to the total number of coins that will ever exist, including those that will be mined or released in the future. Furthermore, a crypto’s circulating supply can be used to determine its market capitalization, which is calculated by multiplying the current market price by the number of coins in circulation.
