1. What is Circulating Supply?

Circulating supply refers to the number of cryptocurrency tokens or coins that are publicly available and circulating in the market. It represents the tokens that are not locked, reserved, or held by the team and are available for trading.

2. How Does the Calculator Work?

The calculator uses the circulating supply formula:

Where:

• \( \text{Total Supply} \) — The total number of tokens that exist or will ever exist
• \( \text{Locked Tokens} \) — Tokens that are reserved, held by team, or otherwise unavailable for public trading
• \( \text{Circulating Supply} \) — The actual tokens available in the market for trading

Explanation: This calculation helps determine the actual market availability of tokens by subtracting locked or reserved tokens from the total supply.

3. Importance of Circulating Supply Calculation

Details: Circulating supply is crucial for calculating market capitalization, understanding token distribution, assessing liquidity, and making informed investment decisions in cryptocurrency markets.

4. Using the Calculator

Tips: Enter total supply and locked tokens in token units. Ensure locked tokens do not exceed total supply. All values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between circulating supply and total supply?
A: Total supply includes all tokens that exist, while circulating supply only includes tokens available for public trading (excluding locked, reserved, or team-held tokens).

Q2: Why is circulating supply important for market cap?
A: Market capitalization is calculated as current price multiplied by circulating supply, making it a key metric for comparing cryptocurrency valuations.

Q3: What types of tokens are typically locked?
A: Team allocations, foundation reserves, tokens in vesting schedules, staked tokens, and tokens allocated for future development or partnerships.

Q4: How often does circulating supply change?
A: Circulating supply changes when locked tokens are released, new tokens are minted (if not max supply), or tokens are burned/removed from circulation.

Q5: Where can I find accurate circulating supply data?
A: Reliable sources include CoinMarketCap, CoinGecko, official project websites, and blockchain explorers for transparent projects.