What happens when a crypto coin reaches max supply?
Maximum supply is defined as the total number of cryptocurrency coins or tokens that will ever be mined, or created. It is the maximum number of units that can ever be in circulation, and once the maximum supply is reached, no new units will be mined or issued.
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.
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.
Put simply, the price of a given cryptocurrency is determined by how much interest there is in the market to buy (demand) as well as how much is available to buy (supply). If there is a high demand, but low supply, the price goes up. If there is a low demand, but a high supply, the price goes down.
Circulating supply affects liquidity, with higher supply ensuring easier trading and price stability. Bitcoin's high Circulating Supply results from its initial rapid mining and future scheduled halving events with the last coin to be mined by the year 2140.
| Coin Name | Max Supply | Growth rate approx in 1 year (2023) |
|---|---|---|
| Bitcoin (BTC) | 21 million | 156% |
| Binance Coin (BNB) | 200 million | 28.71% |
| Cardano (ADA) | 45 billion | 140% |
| Chainlink (LINK) | 1 billion | 170.28% |
Circulating Supply is the current number of coins in circulation on the blockchain. For Bitcoin, the circulating supply will be 19 million and for Ethereum, 121 million. Circulating Supply is always a percentage of the total supply. The higher the percentage, the better.
While total supply exempts any burned tokens, a crypto's max supply considers all the coins that have been (and will be) created, issued, and burned or lost. For mineable coins, once the max supply is achieved, no more coins or tokens will ever be generated.
If the circulating supply is equal to the maximum supply, this means that the entire quantity of cryptocurrencies has been released. The price of the relevant cryptocurrency may gain or lose value depending on market conditions. As an example, the circulating supply and maximum supply of Litecoin (LTC) is 84 million.
Max Supply. While the total supply includes all coins that were already mined (or issued) minus the ones that were burned, the max supply refers to all coins that will ever come into existence.
Will Bitcoin reach 60k?
Bitcoin (BTC) moved back above 60,000 against the US dollar (USD) yesterday and looks set to challenge the all-time high of just under 70,000 over the next few days.
The four fundamental principles of supply and demand are: If supply increases while demand remains constant, price decreases. If supply decreases while demand remains constant, price increases.
Fundamental analysis is particularly useful for people trying to predict whether crypto will rise or fall. It draws inferences from future events and not past price charts. Fundamental analysis can help traders determine the value of cryptocurrency based on a wide range of information.
Some coins do not have maximum supplies. Ethereum is one such example; right now, there is no upper limit on how many ETH can exist, although only roughly 18 million ETH can be minted each year based on the current block discovery times and rewards.
Circulating supply is the total number of a specific cryptocurrency's coins or tokens in circulation on a blockchain and publicly available for the market to trade. The amount in circulation can rise or fall over time as new coins are mined or burned.
The supply of a cryptocurrency refers to the total number of coins that have been, and can ever be, created. Bitcoin has a capped supply of 21 million coins. In contrast, Ethereum has no maximum supply limit, which means that theoretically, an unlimited number of Ether can be created.
The circulating supply of a cryptocurrency represents the number of tokens that are publicly available and circulating in the market. If this information isn't stated on any exchanges, you can find it by directly examining the blockchain of the particular cryptocurrency.
Dogecoin has no maximum supply as in other cryptocurrencies such as Bitcoin. Dogecoin miners earn 10,000 DOGE per block, and each block is created every minute.
StrongBlock Tokenomics
It originally had a max supply of 10 million tokens. However, 94.7% of these tokens were burned to help develop the system's tokenomics. Therefore, the current max supply and total supply are 528,886.
When the max supply and the circulating supply are equal, all coins have been released into circulation. Depending on the state of the market, the price of cryptocurrencies may move up or down, but nothing significant will happen.
Can circulating supply be more than max supply?
Total supply is normally equal or greater than the circulating supply. Maximum Supply: It is the maximum number of coins that will ever exist for a crypto currency. There won't be any more supply once a coin reaches its max supply cap as it is the maximum amount that can ever be mined or produced.
The total supply is basically the sum of the circulating supply and the coins that are locked up in escrow. On the other hand, the max supply quantifies the maximum amount of coins that will ever exist, including the coins that will be mined or made available in the future.
There is no maximum supply of SOL. Instead, Solana has a fixed year-on-year inflation rate. According to Solana's proposed inflation schedule, the initial inflation rate was set to 8% and is distributed through staking rewards.
| Total BTC in Existence | 19,689,812.5 |
|---|---|
| Bitcoins Left to Be Mined | 1,310,187.5 |
| % of Bitcoins Issued | 93.761% |
| New Bitcoins per Day | 900 |
| Mined Bitcoin Blocks | 840,370 |
Bitcoin, Ethereum, and Litecoin are some known examples of low supply cryptocurrencies. There are also smaller and less familiar projects, with limited supplies.
