Token Circulation Supply
Token circulation supply is the number of tokens that are actively available and being traded in the market at any given time, excluding locked, burned, or inaccessible tokens. This metric is essential for calculating market capitalization and assessing the true scarcity of a digital asset.
Unlike total supply, circulation supply provides a more accurate picture of the liquidity available to market participants. In tokenomics, understanding the unlock schedule of circulating supply is vital for predicting potential sell pressure and price volatility.
It acts as a denominator in many valuation models used to determine the fundamental value of a project. Analysts monitor this closely to identify periods where supply expansion might outpace demand.