In plain English
What Circulating supply means
It is a crypto equivalent of a company’s public float, not simply every token ever created. A blockchain may show that tokens exist, while a market-data provider excludes tokens held in a project treasury, subject to a lockup, or allocated to insiders. Therefore, circulating-supply figures can differ across providers and can change when token-unlock or classification information changes.
Why it matters
Circulating supply is commonly multiplied by market price to calculate crypto market capitalization. It can make two assets with the same token price appear very different in size. Comparing it with total or maximum supply can also highlight how much supply may remain outside public circulation, although it does not predict whether or when tokens will be sold.
Example
Assume a token trades at $4. Its total issued supply is 100 million tokens, but 35 million are classified as locked team and treasury holdings. If the reported circulating supply is 65 million, its circulating market capitalization is $260 million (65 million × $4), not $400 million. This simplified example assumes the reported classification is accurate.
Quick answers
Common questions
Is circulating supply the same as total supply?+
No. Total supply generally counts issued tokens less verifiably burned tokens, while circulating supply aims to count tokens available to the public market. Locked, insider-held, or otherwise non-public allocations may be excluded from circulating supply.
Can circulating supply fall?+
Yes. It can fall after a token burn, a methodology revision, or a decision to exclude holdings that were previously counted. It can also rise as newly issued or unlocked tokens become publicly available.
Sources