What is the Circulating Supply?
Circulating supply refers to the number of coins or tokens of a cryptocurrency that are actively available in the market and being traded. It excludes locked, burned, or reserved coins that are not in circulation.
2. What is Market Cap (Market Capitalization)?
Market cap is the total value of a cryptocurrency's circulating supply.
Relationship Between Circulating Supply and Market Cap
If the circulating supply increases, the market cap will increase only if the price remains the same.
If the price increases, the market cap will also increase even if the circulating supply remains constant.
A high market cap usually indicates a more established and widely adopted cryptocurrency.