Total supply
Total supply is the total number of coins or tokens that currently exist. Burned tokens are subtracted from this amount.
What is total supply?
Total supply also includes tokens that exist but are still locked. They aren’t freely available for trading yet.
This is different from circulating supply: the number of tokens in circulation based on the measurement method used. It’s also different from max supply, which is the possible maximum number of tokens that can ever exist.
New token issuance can increase the total supply. A burn, which makes tokens permanently unusable, can lower it. Transferring tokens between holders doesn’t change the total supply.
An example of total supply
Suppose 1,000,000 tokens have been created. Then 100,000 tokens are burned. The total supply is now 900,000 tokens.
If 300,000 of those tokens are locked, then 600,000 tokens are in circulation in this simplified example. So, locked tokens still count toward the total supply.
Why is total supply important in crypto?
Total supply helps you understand how many tokens exist and what portion of them is still locked. You’ll often see this term in news about new token issuance, burns, or changes to issuance rules.
When comparing valuation figures, it’s important to understand the difference between total supply and circulating supply. Market cap is usually calculated using circulating supply, not total supply.
A low total supply doesn’t automatically make a crypto scarce or valuable. Demand, future issuance, and how tokens are distributed among holders also matter. Figures may also be calculated differently by different projects or data platforms.
