Total Circulating Supply

Definition ∞ Total circulating supply represents the total number of digital asset units, such as cryptocurrencies or tokens, that are publicly available and actively trading in the market. This metric excludes tokens that are locked, burned, or otherwise inaccessible, providing a realistic measure of the assets currently in use. It is a key factor in determining a cryptocurrency’s market capitalization when multiplied by its current price. This figure fluctuates over time due to various mechanisms.
Context ∞ Crypto news and market analysis frequently reference total circulating supply when evaluating a digital asset’s scarcity, inflation, and market valuation. Changes in this supply, often due to token burns, vesting schedules, or new issuance, can significantly impact price dynamics and investor sentiment. Understanding this metric is essential for assessing the economic model and long-term prospects of a cryptocurrency.