Max Supply

Max supply, or maximum supply, refers to the maximum number of coins or tokens that will ever exist for a particular cryptocurrency. This number is defined by the cryptocurrency's protocol when it was first created and cannot be changed.

 

The concept of max supply is important because it influences the scarcity of the cryptocurrency. Cryptocurrencies with a low max supply may be perceived as more valuable or scarce, while those with a high max supply may be perceived as less valuable or abundant.

 

For example, the max supply of Bitcoin is capped at 21 million coins. This means that there will never be more than 21 million Bitcoins in existence. Once this number is reached, no new Bitcoins will be created or mined.

 

A crypto’s maximum supply differs from its circulating supply, which refers to the number of coins or tokens currently available and circulating in the market. The max supply is also different from the total supply, which refers to the total number of coins or tokens that currently exist, including those not yet in circulation.