> ## Documentation Index
> Fetch the complete documentation index at: https://docs.theblockchainlibrary.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Circulating Supply

> The quantity of a cryptocurrency or token estimated to be actively available in public circulation.

# Circulating Supply

The quantity of a cryptocurrency or token estimated to be actively available in public circulation.

## Definition

The quantity of a cryptocurrency or token estimated to be actively available in public circulation.

## Why it matters

Tokenomics describes how token supply, distribution, incentives, and utility influence a network economy.

## How it works

The figure is derived by taking the total supply of a token and subtracting tokens held in escrow, team vesting wallets, or DAO treasuries. Exchanges and data aggregators monitor blockchain addresses to filter out these non-circulating holdings. As vesting periods end or locked tokens are released, the circulating supply figure updates accordingly to reflect the new market reality.

## Real-world example

Bitcoin has a high circulating supply because the vast majority of its total potential supply has already been mined and is held by the public.

## Advantages

* Better metric for market cap
* Provides accurate market liquidity view
* Helps prevent valuation manipulation

## Limitations

* Subject to estimation errors
* May exclude active staked tokens
* Vesting schedules cause figure fluctuations

## Common misconceptions

* The circulating supply includes every token that will ever exist.
* Changes in circulating supply are always caused by team manipulation.

## Related knowledge

* [Token](/generated/v2/glossary/token) — term
* [Total Supply](/generated/v2/glossary/total-supply) — term

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**Canonical knowledge ID:** `glossary:circulating-supply`