Total supply of a cryptocurrency is the number of coins or tokens that currently exist, including both circulating and non-circulating ones, but excluding any that have been burned or destroyed.

Total Supply in Cryptocurrency

The concept of total supply is fundamental to understanding the value and scarcity of a cryptocurrency. It represents the total amount of coins or tokens that exist, including those in circulation and those that are locked or reserved. Unlike the circulating supply, total supply counts tokens that are not yet in the public domain and excludes any that have been burned or destroyed.

Understanding the Metrics

Total Supply vs Circulating Supply

The circulating supply is the subset of the total supply that is available to the public and actively traded in the market. It’s crucial for calculating market capitalization, as it reflects the tokens that affect price movements.

Maximum Supply vs Total Supply

The maximum supply is the cap on the number of tokens that can ever exist for a cryptocurrency, including all tokens that will be minted, as well as those that have been or will be burned or lost. In contrast, the total supply is a snapshot of all tokens currently in existence, minus any burned tokens.

Examples in the Market

For instance, Tether (USDT) might have a circulating supply that is lower than its total supply due to reserved tokens. Bitcoin’s maximum supply is famously capped at 21 million BTC, with the total supply reflecting the number of bitcoins currently mined and in existence.

Token Glossary Entries:

A digital asset representing value or utility, often used within decentralized applications.
Buy Wall
A significant buy limit order at a specific price point, frequently set by automated trading systems.
A price movement through a predefined resistance or support level, signaling potential trends.