Circulating supply is the number of cryptocurrency coins or tokens that are currently available to the public and actively trading in the market. It changes over time due to factors like mining, which gradually adds new coins (as with Bitcoin), or coin burns, which permanently remove coins from circulation.

It’s important to distinguish circulating supply from:

• Total Supply: all coins issued minus burned coins (includes locked or escrowed coins).

• Max Supply: the maximum number of coins that will ever exist.

Circulating supply is also a key metric for calculating market capitalization:

MarketCap=Circulating Supply × Current Price 

For example, if a coin has 1,000,000 tokens in circulation priced at $5, the market cap equals $5,000,000.