Circulating Supply vs. Total Supply vs. Max Supply : What’s the Difference?
Understanding token supply is key to smart investing!
Let’s break it down in simple terms with emojis:
1. Circulating Supply
🪙 Tokens actively trading in the market
These are the coins you can buy/sell right now on exchanges.
Like: Chocolates already on the shelf!
✅ Public can use
❌ Not locked or reserved
2. Total Supply
🔢 All tokens that currently exist
Includes both circulating AND locked tokens (e.g., team, staking, or rewards).
Example:
600M in circulation
200M locked
Total = 800M
3. Max Supply
🚫 The absolute limit — no more can ever be created!
It’s written into the project’s code.
(Like Bitcoin’s 21M cap)
Example:
Max Supply = 1B
Minted so far = 800M
Left = 200M (to be released over time)
So why is Circulating < Max?
Because:
🔒 Some tokens are locked/vested
🛠 Some haven’t been minted yet
🎯 Some are reserved for ecosystem growth or rewards
Visual Analogy:
Factory Mode ON!
🏭 Max Supply = All chocolates factory will ever make
📦 Total Supply = Chocolates already made
🛍 Circulating Supply = Chocolates on store shelves
Why It Matters?
Understanding supply helps you:
💸 Spot price potential
📊 Analyze market cap
⚠️ Avoid inflation traps
Next time you see a token, don’t just look at the price. Check the supply!
Knowledge = Profit
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