Every cryptocurrency has a supply, the number of coins or tokens that exist. In practice, that single idea splits into several numbers that price sites show side by side: circulating supply, total supply and maximum supply. They look similar, and the differences between them can change a coin's apparent size by a large factor. This guide explains each one, how they change over time, and which figure matters for which decision.
Circulating supply
Circulating supply is the number of coins that are available to trade. It counts coins that have been mined or released and that are not locked, reserved or burned. It is the figure used to calculate the standard market cap, which is the price multiplied by circulating supply.
For some coins, circulating supply is clear, because the protocol publishes every coin created. For others, it is an estimate, because the project controls some holdings and the site has to judge which of them are free to trade. The estimate can change without any change in the market, and that makes the market cap less stable than it looks.
Total supply
Total supply is the number of coins that currently exist, including those that are locked, reserved or not yet released. It is usually larger than circulating supply, sometimes much larger. The difference is the coins that could enter the market later, and it is a measure of future supply.
A large gap between total and circulating supply is worth noticing. It means a large amount of coins can be added to the market, and each release may add selling pressure if the holders sell.
Maximum supply
Maximum supply is the most coins that will ever exist, if the protocol sets a cap. Bitcoin has a maximum of 21 million coins, which is written into its code. Many other tokens have no maximum, because their contracts allow new coins to be created, and some have a maximum that can be changed by the project.
A maximum supply tells you the longest-term ceiling on the coin's size. It does not tell you how fast the coins will enter the market, which is shown by the release schedule.
A worked example
Suppose a token has these figures.
| Measure | Value |
|---|---|
| Circulating supply | 200 million |
| Total supply | 1,000 million |
| Maximum supply | 1,000 million |
| Price | 2.00 |
| Market cap (circulating × price) | 400 million |
| Fully diluted value (maximum × price) | 2,000 million |
The market cap is 400 million, but the fully diluted value is 2 billion. The difference is 800 million coins that are not yet circulating. If they unlock over time and are sold, the market cap at a constant price would rise towards the diluted figure, but more likely the price would fall as supply grew. Either way, a holder who ignores the gap is comparing the coin with a size it may not keep.
How supply changes over time
Supply can change in several ways. New coins can be mined or minted, as a reward for securing a network or as a token emission for developers and users. Locked coins can be released on a schedule, which is called vesting or an unlock. Coins can be burned, which removes them from the supply permanently, often to reduce it. Holders can also lock coins in a contract, which takes them out of circulation for a period.
Each mechanism affects the market differently. New minting and scheduled unlocks add supply. Burns reduce it. Locks temporarily reduce the supply that trades, which can raise the price for a while if demand is steady.
Which figure to use
Use circulating supply for the standard market cap and for comparing the size of coins that trade. Use total or maximum supply to judge future supply and dilution. Use the fully diluted value to see how large the coin could become at today's price, and to compare the cost of the whole supply. When you compare coins, use the same measure for each, and check the date and the source.
For a holder, the most useful number is the release schedule. Knowing when locked coins will enter the market is more useful than knowing their total, because timing drives the pressure on the price.
Where the figures come from
Protocol supply figures are often public on the network's own explorer or code. Circulating supply for tokens is usually an estimate maintained by the price site or the project. Different sites use different estimates, and some update them slowly. If the figure matters to a decision, check two sources and read the notes on how circulating supply is calculated.
The guide on crypto market cap covers how these figures feed into market cap and rank.
Reading a release schedule in practice
A release schedule lists when locked coins become available. A good schedule states the amount, the date and the recipient group, such as team, early investors, advisers or the foundation. It also states whether the release is a single cliff or a gradual vesting over many months. A cliff can create a large, sudden supply. Gradual vesting spreads the supply, but the total still grows over time, and the market may anticipate each step.
Look at who is receiving the coins. Team and investor allocations usually have a lower cost basis than the public price, so holders in those groups may sell at prices that a new buyer would find unattractive. That incentive is part of why unlocks matter.
Burns and locks in more detail
A burn removes coins from the supply, usually by sending them to an address that cannot be spent. Burns are often announced as a sign of confidence, but they are only meaningful if the amount is large compared with the supply and if the burn is permanent. A lock holds coins in a contract for a set period. A lock on the project's own tokens can be reassuring, but check whether the lock can be ended early by the team, and when it expires.
Common mistakes
Comparing market caps that use different supply measures. One site may use circulating supply and another total supply.
Ignoring unlocks. A large release can matter more than the current market cap.
Trusting an old estimate. Circulating supply changes when tokens are released, so check the date.
Treating maximum supply as the current size. Maximum is a ceiling, not the amount that trades today.
Checklist
- Note which supply figure each site uses for the market cap.
- Compare circulating supply with total and maximum supply.
- Find the release schedule, and the dates of the next unlocks.
- Check the fully diluted value and the gap from the market cap.
- Look for burns, locks and any change to the maximum.
- Record the date and the source of every figure you use.
Key takeaways
A coin has three supply figures that can differ a lot. Circulating supply is what trades and drives the standard market cap. Total supply includes locked and reserved coins, and maximum supply is the ceiling set by the protocol. The gap between them shows future supply, and the release schedule shows its timing. Use the figure that fits your question, compare coins on the same measure, and check the date and the source before you rely on a size.
This guide is for general information, not financial advice. See the disclaimer.