What is circulating supply and Max supply?

The total supply is basically the sum of the circulating supply and the coins that are locked up in escrow. On the other hand, the max supply quantifies the maximum amount of coins that will ever exist, including the coins that will be mined or made available in the future.

The Circulating Supply metric is of utmost importance within the crypto asset industry and for good reason. It, along with a crypto asset’s per unit price, allows investors to better understand the relative valuation of different assets.

For example, even though nominally the circulating supply of Bitcoin (BTC) should be over 18 million coins — as that is how many Bitcoin have been mined since the network’s inception — it is estimated that around 4 million BTC have been permanently lost, placing the true circulating supply closer to 14 million .

Cryptocurrency supply and demand The value of anything is determined by supply and demand. If demand increases faster than supply, the price goes up .