Circulating Supply VS Total Supply

What is Circulating Supply ?

Crypto Circulating supply is the total number of available coins in the market and circulating publicly. In terms of stock is almost the same as the outstanding shares of a public company.

Total Supply

Total supply is the max number of tokens or coins that exist in the market, including circulating supply. The total amount of coins that can be mined, minted, or produced is the total supply. After reaching the total supply no new coin or token can be created.

The Importance of Circulating Supply

Each cryptocurrency has a unique circulating supply value. We can calculate the market capitalization of every coin by the below formula.

Market Capitalization = (circulating supply * price of the coin)

Technically, when the circulating supply percentage is higher, it is better for that particular coin. Because when the circulating supply reaches the total supply, it won't be any new coins to be created. This phenomenon will lead to market scarcity and deflation of the coin.