Circulating Supply Ratio
The circulating supply ratio compares the number of tokens currently available for trading to the total supply that will eventually exist. This ratio provides a quick assessment of how much of the total token supply has already been released into the market.
A low ratio indicates that a significant portion of the tokens is still locked or held in treasury, which suggests potential future dilution for current holders. Conversely, a high ratio indicates that most tokens are already in circulation, reducing the risk of sudden supply-driven price drops.
Investors use this ratio to gauge the maturity of a token distribution and to anticipate the impact of future supply unlocks. It is a fundamental metric for evaluating the current market structure and the potential for long-term supply overhang.
Monitoring changes in this ratio over time helps analysts track the progress of token emission plans and their impact on market liquidity.