This is an indicator to show that you have new notifications in your notifications feed. Notifications bubbles that are blank show that there has been changes within an event to a document or discussion that you are not subscribed to but have access to, and a notification bubble with a number in it indicates that you have received notifications that are related to documents/discussions that you are subscribed to (an 'Alert').
The number contained in the bubble shows how many 'Alerts' are pending in your notification feed.
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