Bitcoin
$ 62,306
Ethereum
$ 2,197.2
Tether
$ 0.9990

Circulating Supply

Circulating Supply refers to the number of cryptocurrency coins or tokens that are publicly available and circulating in the market. It represents the portion of the total supply that is currently in the hands of the general public, investors, traders, and users, excluding tokens that are locked, reserved, or not yet released.

Components of Circulating Supply:

  1. Publicly Held Tokens: Coins or tokens held by everyday users, investors, and traders.
  2. Exchange Wallets: Coins or tokens that are currently available for trading on cryptocurrency exchanges.
  3. Operational Wallets: Coins or tokens used by projects or organizations for daily operations, rewards, or incentives.

Exclusions from Circulating Supply:

  1. Locked Tokens: Tokens that are locked up for a specific period, often in smart contracts, and cannot be sold or used.
  2. Reserved Tokens: Coins or tokens set aside for a specific purpose, such as team allocations, which may be subject to vesting schedules.
  3. Unmined Coins: In the case of cryptocurrencies like Bitcoin, coins that have not yet been mined are not part of the circulating supply.

Importance of Circulating Supply:

  1. Market Capitalization: Circulating Supply is a critical component in calculating a cryptocurrency’s market capitalization. Market Cap = Circulating Supply x Current Price of the coin/token.
  2. Investment Decisions: Investors often consider the circulating supply to assess the scarcity and potential value of a cryptocurrency.
  3. Economic Model: The circulating supply can give insights into a cryptocurrency’s economic model, including inflationary or deflationary characteristics.

Factors Affecting Circulating Supply:

  1. Token Burns: Intentional destruction of tokens by sending them to a burn address reduces the circulating supply.
  2. Token Vesting: A process where tokens are gradually released over time, affecting the number of tokens in circulation.
  3. Lost Coins: Coins that are lost due to forgotten passwords, lost private keys, or inactive wallets can effectively reduce the circulating supply.
  4. Regulatory Actions: Seizures or freezing of assets by regulatory authorities can impact the circulating supply.

Challenges:

  1. Transparency: Not all projects provide clear and transparent data about their circulating supply, leading to potential misinformation.
  2. Dynamic Nature: Circulating supply can change due to various factors, making it essential for investors to stay updated.

Examples:

  • Bitcoin: As of a specific date, if there are 18.5 million Bitcoins mined and 1 million are believed to be lost, the circulating supply might be considered as 17.5 million BTC.
  • Ethereum: If a portion of ETH is locked in staking or DeFi contracts, it’s still considered part of the circulating supply since it’s not permanently removed.
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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin62,306 0.78 % 0.77 % 12.21 %
Litecoin79.32 0.08 % 1.22 % 19.27 %
XRP0.4889 0.77 % 1.46 % 20.08 %
Ethereum2,197.2 0.23 % 0.67 % 2.46 %
USDC1.000 0.10 % 0.02 % 0.08 %
Cardano0.2543 0.15 % 1.68 % 3.38 %
Tether0.9990 0.10 % 0.04 % 0.02 %
Binance Coin (Wormhole)222.47 0.38 % 4.71 % 3.08 %