1:02
beginner
June 13, 2022
back to overview

what is the difference between total supply and circulating supply?

When it comes to cryptocurrencies, circulating supply and total supply terms are used to make different calculations. The circulating supply refers to the amount of coins available to the general public for purchase. The total supply is the full amount of coins that were first created.

The total supply of a coin is, simply, however many were first created. Bitcoin, for example, has a fixed supply of 21 million. There will never be more Bitcoin. Another example is the $MXXR token, with a total supply of 900 million. Total supply is just this; the amount of coins that were first created. The total supply of a crypto is largely an arbitrary choice, what matters more for a coin’s value is the circulating supply.

The number of cryptocurrency coins or tokens publicly available and circulating in the market is referred to as the circulating supply. A cryptocurrency's circulating supply might grow or shrink over time. For example, until the maximum number of 21 million coins is reached, the circulating supply of Bitcoin (BTC) will progressively expand. This slow rise is due to the mining process, which generates new coins every 10 minutes on average. Another variable that affects the circulating supply is any burning events, which permanently removes coins from the market. Bitcoin, for example, has a circulating supply of around 19 million. The remaining 2 million from the 21 million total supply are a mixture of burned coins or coins that are now held in dead wallets that no one can access. It’s important to remember here that these coins are sometimes factored into the circulating supply, so parts of this metric can be slightly unreliable.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

what is the difference between total supply and circulating supply?

When it comes to cryptocurrencies, circulating supply and total supply terms are used to make different calculations. The circulating supply refers to the amount of coins available to the general public for purchase. The total supply is the full amount of coins that were first created.

The total supply of a coin is, simply, however many were first created. Bitcoin, for example, has a fixed supply of 21 million. There will never be more Bitcoin. Another example is the $MXXR token, with a total supply of 900 million. Total supply is just this; the amount of coins that were first created. The total supply of a crypto is largely an arbitrary choice, what matters more for a coin’s value is the circulating supply.

The number of cryptocurrency coins or tokens publicly available and circulating in the market is referred to as the circulating supply. A cryptocurrency's circulating supply might grow or shrink over time. For example, until the maximum number of 21 million coins is reached, the circulating supply of Bitcoin (BTC) will progressively expand. This slow rise is due to the mining process, which generates new coins every 10 minutes on average. Another variable that affects the circulating supply is any burning events, which permanently removes coins from the market. Bitcoin, for example, has a circulating supply of around 19 million. The remaining 2 million from the 21 million total supply are a mixture of burned coins or coins that are now held in dead wallets that no one can access. It’s important to remember here that these coins are sometimes factored into the circulating supply, so parts of this metric can be slightly unreliable.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

back to overview
previous article

there are no older articles

next article

there are no new articles

novice
4:51
what is a DAO?
beginner
1:01
what is the $MXXR token?
novice
1:19
what are peer-to-peer payments?
beginner
1:02
what is the difference between total supply and circulating supply?
expert
1:12
what happens to bitcoin after all 21 million are mined?
novice
0:58
how does bitcoin work?
novice
1:12
what are gas fees?
novice
1:00
what is a smart contract?
beginner
0:49
what is dollar cost averaging?
novice
3:06
what is web3?
beginner
0:47
what is passive income?
novice
0:52
what is leverage trading?
expert
4:12
which is better, proof of work or proof of stake?
beginner
0:53
how do i read candlestick charts?
novice
4:26
what are the advantages and disadvantages of CEXs and DEXs?
beginner
0:43
what should i consider when choosing a crypto exchange and which crypto to buy?
novice
0:51
what makes a coin deflationary?
novice
4:58
what are the advantages and disadvantages of the metaverse?
beginner
0:59
what is technical analysis?
beginner
5:02
what is maxxer?
expert
0:52
what is ethereum?
novice
4:14
what is social trading?
expert
1:11
what is the difference between CEXs and DEXs?
novice
5:07
is crypto the future?
beginner
1:09
what is the difference between a bull market and a bear market?
beginner
2:48
how to start investing in crypto easy?
beginner
1:03
what is fiat currency?
beginner
0:58
what is a stablecoin?
beginner
0:54
what is the metaverse?
beginner
0:59
what is an altcoin?
expert
0:55
what is the difference between proof of work and proof of stake?
beginner
0:52
is bitcoin safe?
beginner
1:19
what is bitcoin mining?
novice
1:06
what is bitcoin?
beginner
1:25
how do i buy crypto?
novice
1:24
what is decentralisation, and why is it a good thing?
novice
0:53
what are NFTs?
beginner
1:24
why is crypto becoming bigger?
novice
1:22
what is the blockchain?
back to overview
beginner
1:02
June 13, 2022
enter the beta today
Join the first community driven crypto exchange with social trading at its core.
create account
get the latest news
We compile the most exciting updates into a newsletter for you, things are moving fast, you don't want to miss out!
sign up now

stay up to date
with maxxer

subscribed
‍succesfully!

subscribed
‍succesfully!

error icon
Oops.. looks like there's something
wrong with your information.

stay up to date
with maxxer

subscribed
‍succesfully!

subscribed
‍succesfully!

error icon
Oops.. looks like there's something
wrong with your information.

stay up to date with maxxer

subscribed
succesfully!

error icon
Oops.. looks like there's something
wrong with your information.