Liquid Supply

Definition ∞ Liquid Supply refers to the quantity of a digital asset that is readily available for trading on public markets. This metric typically excludes tokens that are locked, vested, or otherwise restricted from immediate sale. It is a key indicator for assessing market depth and potential price volatility.
Context ∞ The analysis of liquid supply is a persistent theme in cryptocurrency market reporting, particularly concerning its impact on asset valuations. News often scrutinizes changes in liquid supply due to token unlocks, vesting schedules, or large holder movements. Understanding the dynamics of liquid supply helps contextualize price action and assess the true circulating supply of an asset.