Rebase
A mechanism used by some algorithmic stablecoins where the total supply of tokens automatically increases or decreases to maintain a target price. Unlike traditional supply changes, rebasing adjusts balances in all wallets simultaneously.
Why It Matters
Rebasing is an automatic adjustment of the supply of a cryptocurrency to manage its price or value. This concept is important for understanding how certain stablecoins or elastic supply tokens attempt to maintain their value stability.
Example
In a rebase, if a token's price drops significantly, the supply might be increased to lower the price per token back to a target value. This can create a unique dynamic in trading and valuation.
Beginner Context
For beginners, learning about rebasing is crucial as it introduces the idea of active supply management in cryptocurrencies. It underscores how different projects implement unique strategies to maintain price levels.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Fiat Currency
Money issued by a government that is not backed by a physical commodity like gold. Examples include the US Dollar, Euro, and British Pound. In crypto, fiat is often used as the starting point to buy digital assets.
Dollar Cost Averaging
An investment strategy where you invest a fixed dollar amount into an asset at regular intervals, regardless of its price. This approach reduces the emotional impact of market swings and lowers the average cost over time. Often abbreviated as DCA.
Altcoin
Any cryptocurrency other than Bitcoin. The term combines "alternative" and "coin" and encompasses thousands of different digital assets.
Digital Asset
Any asset that exists in digital form and has value. In the context of crypto, digital assets include cryptocurrencies, tokens, NFTs, and stablecoins. They are stored on blockchains and can be transferred peer-to-peer.
Swap
The direct exchange of one cryptocurrency for another, typically done through a DEX or AMM without going through fiat currency. Swapping is a core function of DeFi platforms like Uniswap and PancakeSwap.