The best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency. *see Circulating Supply and Total Supply.
What Is Max Supply?
Max supply is the best approximation of the maximum amount ofcoins that will ever exist in the lifetime of thecryptocurrency. Once the maximum supply is exhausted, no new coins or tokens will be produced ormined.
Usually, the maximum supply is determined by the limits outlined by each underlying protocol of every digital asset. In the case ofBitcoin, the maximum supply is fixed at 21 million coins. Not all cryptocurrencies have a predetermined fixed supply, and one of them isEthereum.
Maximum supply is a different concept fromtotal supply. Maximum supply is calculated by adding the total amount of coins that have been mined with those that are yet to be mined. In contrast, total supply is calculated by subtracting the number of coins that have been lost from the amount that have been mined.
Types of Maximum Supply in Crypto
There are different types of maximum supply:
Fixed max supply: It is the most common type and is implemented in most cryptocurrencies. It is a predetermined number of coins that can never be increased or decreased, regardless of demand. Bitcoin is an example.
Deflationary max supply: A deflationary maximum supply is one that is designed to decrease over time. This type of supply is usually implemented in cryptocurrencies to reduce the inflation rate and boost its scarcity. Ethereum hopes to become a deflationary max supply coin.
Dynamic max supply: A dynamic maximum supply is one that changes according to predetermined parameters, such as supply, demand and inflation. This type of supply is designed to be more flexible and adaptive to market conditions.
No max supply: Some cryptocurrencies have no maximum supply, meaning that the number of coins can increase indefinitely. This type of supply is often seen in utility tokens, where the supply is not limited by the number of coins but by the number of users.
FAQs
What Is Max Supply? Max supply is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency. Once the maximum supply is exhausted, no new coins or tokens will be produced or mined.
What is the meaning of max supply? ›
Max Supply definition: The limit of tokens that can be created for a particular cryptocurrency, providing insight into its scarcity and potential inflation rate. Max supply denotes the absolute maximum number of coins or tokens that will ever exist for a particular cryptocurrency.
What happens when a coin hits Max supply? ›
The maximum supply of a cryptocurrency refers to the maximum number of coins or tokens that will be ever created. This means that once the maximum supply is reached, there won't be any new coins mined, minted or produced in any other way.
What is the max total supply? ›
Max supply is the total number of tokens that will ever be created or minted for a specific crypto, encompassing all coins that have been, will be, or could be created, issued, burned, or lost. Total supply excludes any burned tokens and represents the actual amount of the cryptocurrency that is available.
How to verify supply on CoinMarketCap? ›
Circulating Supply is verified by our team through communication with the project's team. We ask for details including but not limited to the initial distribution, private allocations, locked addresses, team-controlled addresses, and addresses containing portions of the supply allocated for future use.
What is the meaning of supply in one word? ›
1. a. : to make available for use : provide.
What is a supply limit? ›
It is the maximum number of units that can ever be in circulation, and once the maximum supply is reached, no new units will be mined or issued.
Which crypto has no max supply? ›
Ethereum has no maximum supply, meaning miners can create and indefinitely extract this cryptocurrency. This is called an inflationary cryptocurrency, one that continuously inflates the supply.
Will Bitcoin reach 1 million? ›
Dorsey, who led the social media platform from 2015 to 2021, developed a strong interest in crypto during that time and is now fully focused on the sector. Jack Dorsey believes the price of bitcoin could reach over $1 million by the end of 2030.
Which crypto has unlimited supply? ›
Dogecoin has an unlimited supply of DOGE, as it has no cap on its mining or creation.
Maximum supply is calculated by adding the total amount of coins that have been mined with those that are yet to be mined. In contrast, total supply is calculated by subtracting the number of coins that have been lost from the amount that have been mined.
Which crypto has the highest supply? ›
Cryptocurrencies with a Fixed Max Supply
| # | Name | Symbol |
|---|
| 1 | Bitcoin | BTC |
| 4 | Binance Coin | BNB |
| 5 | Solana | SOL |
| 7 | Lido stETH | STETH |
4 more rowsThe maximum supply of a cryptocurrency can play a significant role in determining its long-term potential. Cryptocurrencies with a well-defined maximum supply, especially those with a decreasing supply over time, may exhibit characteristics of a scarce and valuable asset.
How do you know if a token will pump? ›
Look at the market cap. The market cap of a coin is the total value of all the coins in circulation. Coins with a higher market cap are generally more stable and less likely to pump. However, there are also coins with a lower market cap that have the potential to pump significantly.
What is a good circulating supply in cryptocurrency? ›
Before investing in a cryptocurrency or crypto project, you should check the ratio between the circulating supply and the total supply. If more than 80% of the coins are in circulation, things are going downhill. Seriously consider another investment. The same applies if less than 50% of the coins are in circulation.
How do you detect pump and dump cryptocurrency? ›
Identifying the Telltale Signs of a Pump and Dump Scheme
- Low Trading Volumes and Market Capitalizations: These schemes thrive on illiquid cryptocurrencies, so avoiding such assets can significantly reduce your risk. ...
- Listings on Obscure or Unregulated Exchanges: Here there is less oversight and transparency.
While the total supply includes all coins that were already mined (or issued) minus the ones that were burned, the max supply refers to all coins that will ever come into existence.
What is the difference between circulating supply and max supply? ›
The maximum supply is the upper limit on the number of tokens that can be created, while the circulating supply is the number of tokens that exist and are available for trade in the market. All the cryptocurrency supply metrics are crucial for determining token distribution, demand and market capitalization.
What is the max supply of near? ›
The table above accurately updates our NEAR price in real time. The price of NEAR is up 0.35% since last hour, up 5.41% since yesterday. The live market cap, measured by multiplying the number of coins by the current price is $66.03M USD. NEAR has a circulating supply of 1.10B coins and a max supply of 1.18B NEAR.
