Understanding the Circulating Supply of Cryptocurrency in One Article: Definition, Importance, and Key Data

As of December 25, 2025, the circulating supply of Cardano (ADA) is approximately 35,930,000,000 coins, while its maximum supply is 45,000,000,000 coins, indicating that some tokens have yet to enter the market.

These two data points clearly demonstrate the different states of circulating supply across various cryptocurrency projects. Circulating supply is not just a static number; it is a core indicator for understanding token scarcity, market value, and future potential.

1. Core Concepts of the Three Major Supplies

In the cryptocurrency space, supply is typically divided into three key concepts: circulating supply, total supply, and maximum supply.

Circulating supply refers to the total number of tokens currently available for trading and access in the market. It does not include tokens locked by the project team, reserves, or those not yet released (e.g., through mining). This number directly reflects the current immediate supply in the market.

Total supply is the total number of tokens created to date. This includes all tokens in circulation and those that have been burned. However, it does not include tokens that may be released in the future through mining or mechanisms that have not yet been created.

Maximum supply is a protocol-level hard cap, representing the absolute maximum number of tokens that can exist during the entire lifecycle of the cryptocurrency. For example, Bitcoin’s maximum supply is set at 21,000,000 BTC.

The relationship among these three concepts can be illustrated with a simple example: Suppose a cryptocurrency has a maximum supply of 1,000,000 coins, with 800,000 coins already created (total supply), of which 600,000 are freely traded in the market, and 200,000 are locked by the team. Then, its circulating supply is 600,000 coins.

2. Core Impact of Circulating Supply

Circulating supply is crucial because it directly influences two core market indicators: market capitalization and price supply-demand dynamics.

Foundation for calculating market value. The market cap of a cryptocurrency is a primary indicator of its overall market size and industry standing. The formula is: Market Cap = Circulating Supply × Current Price. This means that even if the price per unit is the same, projects with larger circulating supplies will have higher market caps. For example, if two tokens are both priced at $1, Token A has a circulating supply of 100 million coins, its market cap is $100 million; Token B has a circulating supply of 1 billion coins, its market cap is $1 billion.

Supply-demand relationship and scarcity. According to basic economic principles, all else being equal, scarcity in supply tends to drive value upward. Circulating supply is the most direct indicator of actual supply scarcity at present. A token with limited circulating supply and strong demand has greater potential for price appreciation. Conversely, if a token is continuously issued in large quantities into circulation without matching demand growth, it may exert downward pressure on the price. To counteract this inflationary effect, some projects implement “token burn” mechanisms, permanently removing a portion of tokens from circulation to artificially create scarcity.

3. Key Token Data Case Analysis

Through some representative token data on the Gate platform, we can better understand the different forms of circulating supply.

Bitcoin: A Model of Gradual Release

As the pioneer of cryptocurrencies, Bitcoin is an excellent case for understanding fixed maximum supply and gradual release models.

• Maximum supply: 21,000,000 BTC
• Current circulating supply: approximately 19,966,700 BTC
• Current price: approximately $87,798.6

This means over 95% of Bitcoin has been mined and entered circulation. The remaining portion will be released slowly over the next hundred years through mining rewards controlled by the “halving” mechanism. This predictable scarcity is one of its core value propositions.

Cardano: Not Fully Released Smart Contract Platform

Cardano demonstrates a state where the maximum supply has not yet been fully circulated.

• Maximum supply: 45,000,000,000 ADA
• Current circulating supply: approximately 36,655,000,000 ADA
• Current price: approximately $0.3592

Its circulating supply accounts for about 80% of the maximum supply, indicating that a significant portion of tokens (about 9,070,000,000 ADA) has not yet been released. Investors should pay attention to its future release plans and schedule.

Emerging Tokens with Diverse Structures

Other tokens traded on the Gate platform show more diverse supply structures:

• Altura: A token focused on the gaming NFT sector. All tokens are fully circulated, with total supply and circulating supply both at 990,000,000 ALU.
• Pain: A meme coin based on Solana. Its supply structure shows that most tokens have not yet been released, posing future dilution risks. The maximum supply is 10,000,000 PAIN, with a circulating supply of only 3,499,999.45 PAIN (about 35%).

4. Supply Dynamics and Investment Considerations

The circulating supply of cryptocurrencies is not static; it is mainly influenced by two key mechanisms.

Mining and Block Rewards

For proof-of-work cryptocurrencies like Bitcoin, mining is the primary way new coins are generated and enter circulation. Miners verify transactions and receive block rewards, which are newly minted tokens added to the circulating supply. Bitcoin’s “halving” events periodically cut this reward, slowing the influx of new coins into the market.

Token Burn

Token burning is a deflationary mechanism where projects actively reduce circulating supply. Tokens are sent to irretrievable burn addresses, permanently removing them from circulation. This is common in projects without a maximum supply cap (like Ethereum) or those seeking to manage inflation.

Investor Insights

When researching tokens on platforms like Gate, understanding supply is crucial:

1. Beware of future release risks: If the circulating ratio is low, check the tokenomics, understand future release plans, and assess potential dilution effects on price.
2. Combine with demand analysis: Scarcity alone is not enough to support value. Evaluate the project’s actual utility, community activity, and long-term demand drivers.
3. Monitor dynamic changes: Pay attention to token burn announcements, staking and locking mechanisms, or reward programs, as these will dynamically affect circulating supply.

Bitcoin’s circulating supply is steadily approaching its 21 million cap, with each halving making new coin production more difficult. In the Cardano ecosystem, billions of ADA are still waiting to enter the market, and changes in circulating supply directly impact market cap rankings. Behind every token’s circulating supply data on the Gate exchange’s market page lies a microcosm of the project’s economic model.