Total Supply
Quantidade de unidades de uma criptomoeda que já existem, incluindo as que estão em circulação e as que estão bloqueadas ou reservadas, menos as queimadas.
Key points
- Total supply is the quantity of units of a cryptocurrency that have already been created and still exist, after subtracting those that have been destroyed.
- It includes both the units in circulation and those that are locked or reserved, which are not yet available on the market.
- It differs from circulating supply and maximum supply, and confusing the three leads to mistaken readings of an asset.
What is total supply?
Total supply is the number of units of an asset that exist at a given moment, adding together those that circulate freely and those that are held back for some reason, such as contractual lockups or project reserves. From the total already issued, the units that have been burned, that is, permanently removed from circulation, are subtracted. It is a snapshot of what exists today, not of what can still be created.
How it works
To understand an asset, it is useful to distinguish three measures. Circulating supply is how much is actually available on the market. Total supply adds to that the units that already exist but are locked or reserved. Maximum supply is the ceiling the asset can reach over time, which not every crypto has.
The difference between circulating supply and total supply shows how much has already been issued but has not yet reached the market. These reserved units may be released in the future, for example according to a project's schedules, which increases the available supply and is a relevant factor to track. The difference between total supply and maximum supply, in turn, indicates how much can still be created.
Token burns, when they occur, reduce total supply by permanently removing units from the record.
Why it matters
Total supply helps interpret metrics such as market capitalization and understand an asset's structure. Knowing how much already exists, how much circulates, and how much can still be released gives a more accurate picture than looking at price alone. It is descriptive data, and does not represent any trading recommendation.
Risks and limitations
The three supply concepts are easy to confuse, and using the wrong number distorts analyses. Total supply also says nothing about concentration: many units may be held by few hands. And release schedules for reserved units can change, which makes projections about future supply uncertain. For this reason, it is always best to look at the three supply measures together, rather than in isolation.