Max Supply
The maximum number of coins or tokens that will ever exist for a given cryptocurrency. Bitcoin has a max supply of 21 million BTC. Once the max supply is reached, no new coins can be created, making the asset deflationary by design.
Why It Matters
Max supply is the maximum quantity of a cryptocurrency that will ever be created. This concept is crucial for understanding a cryptocurrency's scarcity, which can influence its value and investment appeal.
Example
Bitcoin has a max supply of 21 million coins. Once this limit is reached, no new bitcoins will be created, potentially leading to increased value as demand remains strong against limited supply.
Beginner Context
For beginners, grasping max supply aids in understanding the economics of cryptocurrencies. It underscores the relationship between scarcity and value, helping new investors assess long-term investment potential.
Mike Starr
Founder, CryptoWizardTools ยท M.S. Organizational Management
Last reviewed: August 2026
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Circulating Supply
The number of coins or tokens of a cryptocurrency that are currently available and circulating in the market.
FDV
Fully Diluted Valuation. The theoretical market capitalization of a cryptocurrency if all tokens in its maximum supply were in circulation at the current price.
Token Burn
The deliberate destruction of a quantity of tokens by sending them to an unspendable wallet address. Token burns reduce the circulating supply, which can increase scarcity. Some protocols conduct regular token burns as part of their tokenomics model.
Tokenomics
The economic model and properties of a cryptocurrency token, including supply mechanics, distribution, incentives, and utility within its ecosystem.
Market Cap
Market Capitalization. The total value of a cryptocurrency calculated by multiplying its current price by the total circulating supply.