Circulating Supply refers to the number of coins or tokens of a specific cryptocurrency that are publicly available to buy or sell.
If you can trade them, they are considered circulating.
Crypto projects often don’t release all of a cryptocurrency’s supply to the market, instead waiting to mine or mint more coins in the future.
Circulating supply can be used to determine a cryptocurrency’s market capitalization (MCAP) by multiplying the current market price by the number of coins or tokens in circulation.
MARKET CAPITALIZATION = CIRCULATING SUPPLY x ASSET’S MARKET PRICE
For example, Bitcoin (BTC) has a circulating supply of roughly 19 million coins.
Let’s say its current price is USD $21,000.
Therefore, its market cap would be 19 million X $21K = USD $399 billion.
Circulating supply shouldn’t be confused with Total Supply or Max Supply.