Always attach a supply definition and observation date to a valuation multiple.
Name the denominator
Circulating supply attempts to describe units considered available to the market under a provider's methodology. Total supply generally concerns units already created, adjusted for recognised burns. Maximum supply describes a stated upper bound where one exists. These numbers need not match, and not every asset has a fixed maximum. A figure copied without its label can silently change the meaning of an otherwise correct valuation calculation.
Compare a hypothetical token
Suppose an asset has 20 million circulating units, 80 million existing units and a stated maximum of 100 million. At a hypothetical price of 0.50, multiplying by circulation gives 10 million, while multiplying by the maximum gives 50 million. Neither calculation says that the future market will hold the price constant. Fully diluted valuation is a scenario-style mark using a wider supply denominator, not a forecast of future market capitalisation.
Unlocks change availability, not necessarily intent
An unlock can make previously restricted tokens transferable. It does not prove that the recipient will immediately sell them, and a published schedule may require interpretation of vesting contracts and allocation terms. Conversely, a treasury label does not prove that funds are technically locked. Review who controls the tokens, what restrictions are enforceable and whether relevant permissions can change. Separate facts about transferability from speculation about future holder behaviour.
Reconcile disagreements
If two dashboards report different circulation, compare their exclusion rules and update times before declaring one wrong. Bridge representations can also complicate counting if a report treats locked backing and represented units inconsistently. Keep a source note explaining which balances were included and why. Ask whether supply is verified, estimated or unavailable. These distinctions improve comparisons, but they do not establish fair value or tell you whether an asset's price should rise or fall after a scheduled supply event.
Sources & context
Sources checked 7 October 2026. This is explanatory coverage, not personalised investment advice. Our corrections policy.
