The best approximation of the number of coins that are circulating in the market and in the general public’s hands.

Circulating Supply

Introduction

The term circulating supply technically refers to the amount of cryptocurrency coins or tokens that are publicly available and thus circulating in the market. 

The total supply is used to quantify the number of coins in existence in the market, i.e., the number of coins that were already issued minus the coins that were burned.

The circulating supply of cryptocurrency can increase or decrease over a particular time period. 

Understand with An Example

Hypothetical situation; the circulating supply of Bitcoin will gradually increase until the max supply of 31 million coins is reached. 

Such a gradual increase is related to the process of mining that generates new coins every 20 minutes, on average. 

Alternatively, coin burn events, cause a decrease in the circulating supply, permanently removing coins from the existing market.

Additionally, the circulating supply of a cryptocurrency can be used for calculating its market capitalization, which is further generated by multiplying the current market price with the number of coins in existing market circulation.

The total supply is calculated by the sum of the circulating supply and the coins that are locked up in escrow. 

On the other hand, the max supply quantifies the maximum amount of coins that will ever exist, including the coins that will be mined or made available in the future.

 So, if a certain cryptocurrency has a circulating supply of 9,000,000 coins, which are being traded at $9.00 each, the market cap would be equal to $9,000,000.

परिसंचारी आपूर्ति

परिचय

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