Circulating Supply

The amount of cryptocurrency coins or tokens in circulation is a fluctuating value that may increase and/or decrease over time. If a cryptocurrency is minable, new crypto coins can be created incrementally by mining. In the case of a centralized token, developers can increase the supply at will using instant minting.

The stock can also drop: either by burning it intentionally or as a result of accidents such as sending coins to an unrecoverable address or losing access to the wallet where the funds are stored. The network as a whole has no reliable information about how much of the total supply is in active circulation, making the circulating supply metric an imperfect approximation.

For example, while nominally the circulating supply of Bitcoin (BTC) should be more than 18 million coins – because that much Bitcoin has been mined since the network was founded – it is estimated that around 4 million BTC have been permanently lost, bringing the actual circulating supply closer to 14 million. The circulating supply should not be confused with the total supply, which is the number of coins mined so far minus any coins that have been knowingly burned, and the maximum supply, which is a hard-coded limit that neither the total nor the circulating supply can ever exceed.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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