Total Supply(Total Supply) Beginner's Guide
Total Supply measures all tokens that currently exist and have not been burned, including those in circulation, locked, and reserved. Comparing it with circulating supply and maximum supply helps clarify token allocation and the potential for future dilution.
Total Supply What does it measure?
Total Supply is the number of tokens that have currently been mined or issued and still exist. The calculation includes tokens in public circulation as well as tokens that are locked, in a vesting period, or held in reserve; tokens that have been burned or otherwise permanently destroyed are deducted, so burning permanently reduces Total Supply.
Difference from circulating supply
circulating supply only counts tokens held by the public that can circulate and be traded in the market. It excludes locked or reserved tokens, so it is generally lower than or equal to Total Supply. The material states that market capitalization is typically calculated using circulating supply because temporarily locked or reserved tokens have not entered the public market.
Difference from maximum supply
maximum supply represents the maximum number of tokens that may ultimately exist, including tokens that have not yet been generated; Total Supply only considers the existing stock of tokens that have already been issued or mined, after deducting burned tokens. Once maximum supply is reached, no new coins will be created, and not every token necessarily follows the same issuance arrangement.
Why does it matter?
Comparing Total Supply with circulating supply shows how many tokens have not yet entered the public market. A large gap between the two may indicate that many tokens remain locked and could increase the circulating supply and cause dilution when unlocked in the future; however, this metric only provides clues about the supply structure and cannot be used alone to assess a project's value.
Original Tutorial
https://www.binance.com/en/academy/glossary/total-supply
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