Circulating Supply
Circulating supply refers to the number of tokens that are publicly available and currently circulating in the market. It excludes tokens that are locked, held by the project treasury, or otherwise restricted from trading.
This metric is essential for calculating the market capitalization of an asset, which is the product of the current price and the circulating supply. Understanding the difference between circulating supply and total supply is crucial for assessing the potential impact of future token unlocks on price.
As more tokens enter circulation, the supply increases, which can create downward pressure on price if demand does not keep pace. It is a foundational data point for fundamental analysis in the digital asset space.
Glossary
Cryptocurrency Market Capitalization
Capital ⎊ Cryptocurrency market capitalization represents the aggregate value of all circulating tokens or coins for a given cryptocurrency, calculated as the current price multiplied by the circulating supply.
Inflationary Tokenomics Models
Algorithm ⎊ Inflationary tokenomics models, within cryptocurrency, represent a scheduled increase in circulating supply designed to influence economic behavior and network security.
Programmable Money Risks
Algorithm ⎊ Programmable money risks, within decentralized finance, stem from the inherent complexities of smart contract code governing asset behavior.
Smart Contract Security Risks
Vulnerability ⎊ Smart contract security risks stem from potential flaws, bugs, or exploits in the code that governs decentralized applications and financial derivatives.
Smart Contract Audits
Audit ⎊ Smart contract audits represent a critical process for evaluating the security and functionality of decentralized applications (dApps) and associated smart contracts deployed on blockchain networks, particularly within cryptocurrency, options trading, and financial derivatives ecosystems.
Token Unlock Schedules
Token ⎊ Schedules define a predetermined timeline for the release of tokens from a vesting contract, commonly employed in cryptocurrency projects to incentivize team members, advisors, and early investors.
Market Price Discovery
Analysis ⎊ Market price discovery, within cryptocurrency and derivative markets, represents the process by which previously unknown information becomes reflected in asset prices.
Blockchain Scalability Solutions
Architecture ⎊ Blockchain scalability solutions represent a structural shift in distributed ledger design intended to increase transaction throughput and decrease latency without compromising decentralization.
On-Chain Governance Mechanisms
Action ⎊ On-chain governance mechanisms facilitate direct participation in protocol modifications, shifting decision-making power from centralized entities to token holders.
Insurance Coverage Options
Insurance ⎊ Within the evolving landscape of cryptocurrency, options trading, and financial derivatives, insurance represents a critical risk mitigation strategy.