Total supply vs Circulating supply

Total supply and circulating supply are two metrics that investors often use to value a crypto coin. Circulating Supply means showing the number of crypto coins that have been mined or the number of crypto coins available for trading in the market. But if the Total Supply has been determined by using the code / script on their blockchain which refers to the Maximum Supply. To make this explanation easier, I will give an example: At this time March 23, 2022, in Coinmarketcap the circulating supply of Bitcoin shows the number 18,990,087 BTC, while Supply Max is only 21 million BTC, so to find out the number of coins that have been mined or distributed, you only need to need to divide the amount of Supply in circulation by Max Supply. So the calculation is:
18,990,087 BTC / 21 million BTC = 0.904 or 90.4%. Woo means the amount of unmined Bitcoin is less than 10%. This shows that the less Bitcoin that has not been mined will show the Bitcoin in circulation will be more valuable.
Total supply and circulating supply on non-minable Altcoins, we can evaluate based on the circulating supply of coins and the total supply ratio, if the calculation results produce a number that is too large, it means that the coin has the potential to drop in price due to oversupply, you can also estimate how much coins that have the potential to be dumped by the developer.

 

[Mika]

I think a lot of people get mixed between the circulating supply and max supply (or total supply). Circulating supply means the total number of coins in the market that is available for use (invest, trade, etc), Max supply or the total supply is the maximum number of coins that will be produced for mining. This number is created by the developer. For instance, when Satoshi Nakamoto created Bitcoin, he limited the maximum number of bitcoin to 21 million, when Charles Hoskinson created ADA he limited ADA to 45 billion, currently there 33 billion ADA in supply (circulating supply) and there will be only 45 billion ADA (total supply). Interestingly, a lot of coins do not have any max or total supply, for example dogecoin one of the most popular meme coins does not have any max supply, it has an unlimited supply. Tron, is not a meme coin though, also does not have max supply, there will be an unlimited number of TRX. If you are investing on any coin you will have to be very careful about circulating supply and max supply. If a coin has no capped max supply, it is very unlikely that the coin will gain high value.