What Is the Significance of a Token’s Total Supply and Circulating Supply?

Total supply is the maximum number of tokens that will ever exist, including those currently locked or unreleased. Circulating supply is the number of tokens currently available and trading in the market.

The significance lies in understanding the token's scarcity and potential for future inflation or dilution. A high circulating supply relative to the total supply suggests most tokens are already in the market, while a low ratio indicates significant future token releases, which can exert downward pressure on the price.

Both are key to calculating market capitalization.