I know you must have heard about cryptocurrency circulating supply, and if you are new to the crypto space then like other beginners, it is only right that you know how to find circulating supply of crypto.
Because it is important to look at the crypto circulating supply and also the total supply before you buy it, the good news is that it is also easy to find.
So, in this post, I will take you step by step on how to find the circulating supply of crypto and how circulating supply affects a crypto price, plus two (2) of the best places to find it.
To show you exactly how you can find the circulating supply of any cryptocurrency going forward.
I am sure it will be helpful to you.
What Is Circulating Supply Of Cryptocurrency
Circulating supply of crypto is the total number of the cryptocurrency coins that are currently available and circulating actively in the market. It is completely different from Total Supply.
But you have to keep in mind that the crypto circulating supply can increase or decrease over time.
How Does Circulating Supply Increase
Depending on the particular crypto, new coins are created gradually via mining or minting, thereby increasing the circulating supply until the Max Supply is reached.
Using bitcoin as an example, new bitcoins are generated every 10 minutes through mining, meaning the circulating supply of bitcoin will continue to increase every 10 minutes until the max supply of 21 million BTC is reached.
And depending on the particular crypto, circulating supply can also go down through Burning, permanently removing coins from the market.
What Is The Difference Between Circulating Supply And Total Supply
The total Supply of a cryptocurrency is the total number of coins that have been mined or minted so far, minus all the coins that have been verifiably burned.
While Circulating Supply is the number of cryptocurrency coins that are circulating in the market and in the general public’s hands.
The network has no reliable knowledge of how much of the total supply is in active circulation because from time to time people lose access to their crypto wallet where funds are stored, making the metric of circulating supply an imperfect approximation.
What Happens When Circulating Supply Reaches Max Supply
First, some cryptocurrencies do not have a maximum supply, that being said, the circulating supply of crypto reaching its max supply is a good thing.
When it happens, there will be fewer coins available on the market for the buyers. Meaning an influx in cash will create market scarcity, and you know what happens when demand is higher than supply.
How Does Circulating Supply Affect Cryptocurrency Price
The circulating supply can be used to gauge a coin’s scarcity, it can give you an idea of how scarce a particular crypto is. This means the scarcer the crypto is, the higher its price is likely to be.
Bitcoin, for example, has a circulating supply of about 19 million BTC, while Ethereum has a circulating supply of about 120 million ETH, which makes Ethereum much less scarce than Bitcoin, and why its price can never overtake bitcoin’s price.
So, a crypto with a lower circulating supply has a higher chance of reaching a high price, compared to coins like the Shiba Inu Coin with about 549 trillion SHIB in circulating supply, or DogeCoin with about 132 billion DOGE in circulating supply. Coins with such a high circulating supply will find it difficult to reach $1.
Circulating supply can also be used for calculating the Market Capitalization of any cryptocurrency, all you have to do is multiply the circulating supply by the crypto asset’s current market price.
So, the Market Cap of a crypto that is trading at $20 with a circulating supply of 200,000,000 coins will be $4,000,000,000.
Circulating Supply x Current Price = Market Cap.
How To Find Circulating Supply Of Crypto On CoinMarketCap
1. Go to CoinMarketCap.com
2. Then take a look at the right side of the page.
You can also find a circulating supply of crypto on CoinMarketCap by;
1. Clicking on the crypto (Bitcoin for example)
2. Then find the circulating supply.
That is it.
How To Find Circulating Supply Of Crypto On CoinGecko
1. Go to CoinGecko.com
2. Click the crypto you want to find its circulating supply (bitcoin for example)
3. Then find the circulating supply.
That is it.
Finding a circulating supply of crypto is very easy to do, and as I mentioned earlier, it is important to look at it before buying any coin, as it can help you with managing your expectation.
I believe this post has been helpful, drop a comment below if you have a question.
IMPORTANT; you must never send money to anyone you meet online asking to help you invest in cryptocurrency. They are scammers. Crypto is easy, and you can do it all by yourself.
The information presented here should not be used as the sole basis of any investment decisions, nor should it be construed as financial, tax, legal, or accounting advice. I will also advise that you invest in cryptocurrency only what you are comfortable living without, at least temporarily.