Circulating Supply

Circulating supply refers to the number of units of a particular cryptocurrency that are publicly available and in circulation in the market. This includes all the coins or tokens that have been mined or created and are not locked up or held by the project or team behind the cryptocurrency.

The circulating supply is an important metric to consider when analyzing the value of a cryptocurrency because it affects its overall market capitalization, which is calculated by multiplying the circulating supply by the current market price of the asset.

For example, if a cryptocurrency has a circulating supply of 10 million coins and a market price of $10 per coin, its market capitalization would be $100 million.

It is important to note that the circulating supply can change over time as new coins are minted or issued, or existing coins are burned or destroyed. In addition, some cryptocurrencies may have a maximum supply cap, meaning that the circulating supply will eventually reach a fixed number and no more coins will be created.

Overall, understanding the circulating supply of a cryptocurrency is crucial for investors and traders to make informed decisions about buying and selling the asset, and to properly evaluate its overall value and potential for growth.

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