How does circulating supply decrease?

Generally speaking, when the maximum supply is reached, there will be fewer coins available on the market . This is expected to create market scarcity, which may eventually lead to deflation conditions (or 0% inflation rates).

Circulating supply can only be diminished by burning coins (destroying them). Circulating can only be increased by active production (mining) until the max cap (if any) is reached.

Bitcoin Price Circulating Supply18,985,575 BTCTotal Supply18,985,575 BTCMax Supply21,000,000 BTCBitcoin price today, BTC to USD live, marketcap and chart | CoinMarketCap coinmarketcap.com › currencies › bitcoin

Additionally, one can calculate the total market capitalization of a coin by multiplying a coin’s market price with the number of circulating coins . For example, if a certain cryptocurrency is traded at $2.00 each, and has a circulating supply of 1 million coins, the total market cap would equal $2 million.