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.
Does crypto supply affect price?
Those in favor of fixed supplies, as seen in Bitcoin, say that this creates digital scarcity. Lower supply can mean higher demand, thereby increasing prices.
Does total supply matter in crypto?
Bear in mind that it is important to monitor the circulating supply of a cryptocurrency – not the total supply. After all, it is only the circulating supply that is really available on the market right now. The market cap of a cryptocurrency more or less reflects the popularity of a coin over a longer term.
What is a good max supply in cryptocurrency?
Usually, the maximum supply is determined by the limits outlined by each underlying protocol of every digital asset. In the case of Bitcoin, the maximum supply is fixed at 21 million coins.
Is high circulating supply good?
Circulating supply is the amount of any given asset freely moving around the market. Multiply the circulating supply by the asset’s price and you get its market cap. Assets with more circulating supply often trade at cheaper prices in terms of dollar value per coin or token.
