Circulating Supply

• The circulating supply is the amount of the cryptocurrency which can be accessed by the public. As the name suggests, it is the coins that circulate in the market.
• The circulating supply of a coin can be increased with the mining method. In contrast, with burning, the supply of a coin can decrease. Learn what crypto burning is.
• Every cryptocurrency has unique supply and supply principles. Therefore when it comes to the circulating supply, it may vary from coin to coin.
• The circulating supply can not exceed the max supply or the total supply.

Total Supply vs. Circulating Supply

Total supply is the total amount of the coins mined and in existence. In contrast, the circulating supply of coins is calculated approximately with the deduction of burned coins from the total supply of coins. However, in a network, the community can not know the circulating supply precisely because of the wallets that are lost permanently.

Popular Cryptocurrencies with Circulating Supplies

Bitcoin: Circulating supply of Bitcoin is planned to increase gradually to the max supply of 21 million. On average, every 10 minutes, a new Bitcoin is generated, which adds one more Bitcoin to the circulating supply until it reaches the 21 Million Bitcoin. Even though the total amount of Bitcoins should be around 18 million, permanently lost wallets make up to 4 million lost coins.

Binance Coin (BNB): Binance uses coin burning to decrease the number of coins that circulates. Most of the time, the coins get transferred to an account unavailable to everyone. This causes the circulating supply to decrease in the Binance Coin.

Circulating Supply on Market Capitalization Calculation

The circulating supply is also used to find the market capitalization of a particular coin. Market capitalization is found by the formula of multiplying the circulating supply with the current price of the coin.