Circulating supply meaning refers to the number of cryptocurrency coins or tokens that are publicly available and circulating in the market.
The circulating supply of a cryptocurrency can increase or decrease over time. For instance, the circulating supply of Bitcoin will increase as more and more coins get mined. This will continue until the maximum supply of 21 million coins is reached. On the other hand, coin burn events can occur, where there is a decrease in the circulating supply as some coins are permanently removed from the market.
The circulating supply refers to the coins that are accessible to the public and should not be confused with the total supply or max supply. The total supply is used to calculate the number of coins in existence, which is the number of coins that were already issued minus the coins that were burned. The total supply is essentially the sum of the circulating supply and the coins that will be fined in the future. On the other hand, the max supply quantifies the maximum amount of coins that will ever exist, which is the total coins that were mined before plus the total coins that will be mined in the future.
One use of circulating supply is for calculating its market capitalization, which is derived by multiplying the current market price with the number of coins in circulation.
In conclusion, circulating supply meaning refers to the number of cryptocurrency coins or tokens that are circulating in the market currently. It does not include coins that have been permanently destroyed or coins that will be mined.
