Circulating supply refers to the total number of tokens that are currently in circulation and available for trading in the open market. It excludes tokens that are locked, vested, burned, or otherwise not accessible.

Circulating supply is a key metric for evaluating a token's market capitalisation. Market cap is calculated by multiplying the circulating supply by the current token price. A lower circulating supply relative to total supply suggests more tokens will enter circulation in the future.

Token locking directly affects circulating supply. When tokens are locked in a smart contract, they are removed from circulation for the duration of the lock. This can reduce sell pressure and support token price stability.