Circulating supply refers to the number of cryptocurrency tokens that are publicly available and actively trading in the market. It excludes tokens that are locked, reserved, or otherwise not available for public trading.
This metric is one of the most important indicators for assessing a token's true market value. Market capitalization is calculated by multiplying the circulating supply by the current token price, making it a foundational metric for comparing different cryptocurrencies.
Circulating supply changes over time as new tokens are unlocked from vesting schedules, minted through staking rewards, or removed through token burns. Tracking these changes is essential for understanding supply-side pressure on token prices.