Cryptocurrency Circulation

Definition ∞ Cryptocurrency circulation refers to the total quantity of a digital asset currently available to the public. This metric includes all tokens in wallets, exchanges, and smart contracts, excluding those permanently locked or burned. It provides a measure of the supply side of a cryptocurrency’s economics. Understanding circulation is essential for assessing market capitalization and potential price movements.
Context ∞ Reports on cryptocurrency circulation often accompany discussions about tokenomics, inflation, and supply constraints. Significant changes in circulation can influence market perception and asset valuation. Monitoring adjustments to token supply schedules or large movements from treasury accounts provides crucial information for market analysis.