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 maximum 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? ›
After a token reaches maximum supply, the argument goes, the coin's supply becomes static - miners can no longer create new coins. The demand should continue to grow. A maximum cap, they hope, guarantees value gains. Not many such coins exist.
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 crypto has the lowest max supply? ›
- Low Supply Cryptocurrency List.
- Best Low Supply Cryptocurrency.
- cVault.finance.
- yearn.finance.
- UniCrypt.
- Beefy Finance.
- Doge Killer.
- Wrapped Bitcoin.
Total supply provides a broader picture of coin availability, but not all units are tradable. Meanwhile, Max Supply is the maximum limit on the number of coins that can ever be in circulation.
Why is Max supply important? ›
Why is max supply important? Max supply is important because it allows you to calculate the total market cap of a project and to estimate what the total market cap could be in the future. To find the total market cap of a project you simply need to multiply the maximum supply by the current market price.
Which crypto has the highest supply? ›
Coins with large supply
| Coin | Rank | Change % 24h |
|---|
| AIDOGE | 476 | +11.32% |
| BABYDOGE | 150 | +18.50% |
| KISHU | 586 | +3.25% |
| QUACK | 574 | +2.52% |
55 more rowsDogecoin (DOGE)
Originally created as a joke after the run-up in Bitcoin, Dogecoin takes its name from an internet meme featuring a Shiba Inu dog. Unlike many digital currencies limiting the number of coins in existence, Dogecoin has unlimited issuance.
How long does it take to mine 1 Bitcoin? ›
You cannot mine just 1 Bitcoin, instead crypto miners will mine one block, with the reward set at 6.25 BTC per block. Each Bitcoin block takes 10 minutes to mine. This means that in theory, it will take just 10 minutes to mine 1 BTC (as part of the 6.25 BTC reward).
Technical indicators such as moving averages, relative strength index (RSI), and volume analysis can give you insights into the price movements of a cryptocurrency. Look for abnormal patterns or anomalies that could indicate a pump and dump scheme in progress.
What is the difference between total supply and max 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 do you detect pump and dump cryptocurrency? ›
Real-time monitoring – by analyzing large volumes of trading data, AI fraud platforms can reveal patterns noting possible pump and dump schemes. This includes abnormal trading volumes, sudden price spikes followed by sharp declines, and coordinated buying activities across multiple accounts.
Which crypto has 1000x potential? ›
The PEPU token is poised to cater to a massive audience thanks to its viral appeal, and the developers plan to engage the community through social media-driven campaigns. While still in its infancy, PEPU's low entry price makes it a strong contender for those hoping to capture 1000x gains.
What is the most scarce crypto? ›
In the dynamic world of cryptocurrencies, assets with limited supplies hold a unique appeal due to their scarcity and potential for value appreciation. In this blog, we talk about the best crypto with limited supply. These include Bitcoin, Binance Coin, Cardano, Chainlink, XRP, Avalanche, and Litecoin.
What is the next big altcoin? ›
Best Altcoins for Next Bull Run
| Coin | Market Capitalization | Current Price |
|---|
| Polygon (MATIC) | $5.18 billion | $0.5206 |
| Kaspa (KAS-USD) | $4.15 billion | $0.1693 |
| Stellar (XLM-USD) | $2.94 billion | $0.09983 |
| Cosmos (ATOM-USD) | $1.97 billion | $5.03 |
4 more rowsAug 30, 2024
Maximum supply is a different concept from total 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.
What is the meaning of limit of supply? ›
limits of supply means any limits specified in an enactment as the limits within which water undertakers are authorised to supply water and includes, in relation to water undertakers who are supplying water otherwise than under an enactment, the limits within which they are supplying water; Sample 1Sample 2.
What is an example of a maximum? ›
Maximum means the most you can have of something. For example, if the maximum amount of oranges you can juggle is five, you cannot juggle more than five oranges.
