Library · Crypto, word by word · Tokens and supply
What is circulating supply?
Circulating supply is the number of a token's units that exist and are free to trade now. It leaves out units that are locked, still vesting, held back in a treasury or not yet created, so it is usually smaller than total or maximum supply.
What it means for you
Market cap is usually calculated from circulating supply, so the same price can show a much smaller figure than fully diluted valuation. When locked units are released, circulating supply rises; the project's own disclosures say how much is reserved and when it vests.
How it works
A token's supply comes in layers: the maximum, if the rules fix one; the units already minted; and, within those, units not yet free to trade because they are reserved for a treasury or particular participants, still vesting, or under lock-up. The SEC lists each layer as a disclosure item, along with any process for redeeming, retiring, freezing or burning units. Circulating supply is what remains after the non-tradable layers are removed, which is why it rises when vesting releases units and falls when units are burned.
An example
Say a token has a max supply of 100 million, 60 million minted, and 40 million of those locked for the team and treasury. Circulating supply is 20 million. When 10 million team tokens unlock, it becomes 30 million, a 50% rise, with no new tokens minted.
Sources: SEC: Statement on Offerings and Registrations of Securities in the Crypto Asset Markets, FINRA: Market Cap Explained · checked 4 October 2026
Often confused with
Related words
Educational content, not financial advice. Written by hand and checked against the source named above. Something wrong? Tell us and we reply within two business days.