The whole amount of coins that are currently in use and available to the general public is referred to as the “circulating supply.” This amount can change based on the number of new coins or tokens that are mined or produced, as well as the quantity that is destroyed by burning.
The primary method for determining market capitalization uses circulating supply. Simply multiply it by the price at which the cryptocurrency asset is currently traded. Although it doesn’t necessarily correlate with an asset’s price, it can be used to determine how scarce a coin or token is.
The term “circulating supply” refers to the coins that are present for the general public and is different from “total supply” or “maximum supply.” The total coins in circulation, or the number of coins issued minus the number of coins burnt, is measured by the total supply. Essentially, the circulating supply and the coins kept in escrow make up the entire supply. On the other hand, the maximum supply calculates the total number of coins that will ever exist, including those that will be produced through mining or other means.
